The Semiconductor Technology Sector in the European Union: Diagnosis and Development Prospects (Zeszyty Studenckie „Nasze Studia)

Summary

• In 2022 the European Union had only 7% of total world semiconductor production.p.2
• On average 80% of semiconductor suppliers active on the European market are based outside the EU, and about 63% of their customers are also outside it.p.2
• Intel's planned investment near Wrocław was estimated at a record $4.6 billion, but projects in Poland and Germany were put in question.p.3
• In 2023 the EU semiconductor sector employed about 382,200 people, of whom 263,000 worked directly in production or design.p.4
• The Chips for Europe initiative is to mobilise €43 billion of public and private investment, of which €3.3 billion comes from the EU budget.p.5
• The main goal is to double the EU producers' share of global semiconductor production to 20% by 2030.p.5
• The global semiconductor market is expected to grow from $550 billion in 2021 to over $1 trillion by 2030.p.5

Key insights

1. The global semiconductor market is geographically imbalanced, with main producers in Taiwan, South Korea, the USA and China.p.2
2. European firms depend heavily on non-EU suppliers and customers, which threatens digital sovereignty and supply chain stability.p.2
3. ASML is the only producer of EUV lithography machines used by TSMC and Samsung.p.3
4. Planned investments are concentrated in Germany, Ireland, France and Italy, creating imbalances inside the EU.p.3
5. A shortage of skilled labour is seen as one of the most serious threats to the sector's production and development capacity.p.4
6. The IPCEI scheme covers 68 strategic projects in microelectronics and communication technologies.p.5
7. Only entities from 13 EU states currently cooperate with the European Chips Skills Academy.p.6
8. The author considers it unlikely that the Chips Act goals and a manufacturing advantage will be reached by 2030, since much EU funding goes to other projects.p.7