EU ‘off the pace’ in global microchip race: Auditors

The EU is lagging behind in the global race to produce microchips, and looks set to fall well short of its target to claim a fifth of the world’s market, the bloc’s auditors said Monday.

“The EU urgently needs a reality check in its strategy for the microchips sector,” said Annemie Turtelboom, a member of the European Court of Auditors.

“This is a fast-moving field, with intense geopolitical competition, and we are currently far off the pace needed to meet our ambitions.”

The disappointing outlook for the European Union comes despite Brussels passing a flagship Chips Act in 2023 aimed at bolstering production in the bloc.

Turtelboom said that at current growth rates, the EU was “nowhere close” to reaching its target of having a 20% share of the global microchip market by 2030.

In its own estimates, the European Commission forecasts the EU’s share will only reach 11.7% in 2030, up from around 10% in 2022.

“Europe needs to compete—and the European Commission should reassess its long-term strategy to match the reality on the ground,” Turtelboom said.

The EU began prioritizing local chip production after the coronavirus pandemic triggered supply chain shocks that led to significant shortages.

Leading powers like the United States and China have also ramped up efforts to bolster their own industries.

The auditors’ report said investments by the EU’s competitors “dwarfed” that foreseen by the Chips Act.

The bloc’s efforts were also hampered by other factors including a reliance on imports of raw materials, high energy costs, export controls and a shortage of skilled labor, it said.

The commission said it took note of the report but defended its efforts.

“The Chips Act has laid a strong foundation in consolidating Europe’s position in the global semiconductor market after two decades of decline, and put Europe back on the path of growth,” said EU digital spokesman Thomas Regnier.

© 2025 AFP