“Finally, the Chips Act 2.0 should include flexibility and adaptability mechanisms to respond quickly to industry and geopolitical changes, ensuring that the EU strategy remains relevant and effective in the evolving semiconductor landscape,” Rawat added.
Overcoming export restrictions
A major challenge has been the trade restrictions imposed on companies such as ASML when it comes to exports to China. The ESIA has urged a more constructive approach, advocating incentives rather than protectionism.
“By curbing sales of advanced semiconductor manufacturing equipment, European companies risk losing important revenue streams, potentially weakening Europe’s position as a leader in this high-tech industry,” Rawat said. “Furthermore, the shrinking market size could lead to a slowdown in R&D investments, ultimately hampering innovation in Europe’s semiconductor ecosystem.”
Furthermore, these restrictions could trigger retaliatory actions by affected countries, potentially disrupting global supply chains and increasing operating costs for European companies.