“Finally, the Chip Act 2.0 should include mechanisms for flexibility and adaptability to rapidly respond to industry and geopolitical shifts, ensuring that the EU’s strategy remains relevant and effective in the evolving semiconductor industry,” Rawat added.
Overcoming export restrictions
A major challenge is trade restrictions on companies like ASML for exports to China. ESIA encourages a more constructive approach, focusing on incentives rather than protectionism.
“By curbing sales of advanced semiconductor manufacturing equipment, European companies risk losing a significant revenue stream and could weaken Europe’s leadership position in the high-tech industry,” Rawat said. “Furthermore, a shrinking market size could lead to a slowdown in research and development investment, ultimately hindering innovation in the European semiconductor ecosystem.”
Moreover, these restrictions could provoke retaliatory measures from affected countries, disrupt global supply chains and increase operating costs for European companies.
