For years it has been the norm to rely solely on production running in 1 country – often China, because of their skilled PCB production and great price for manufacturing. With larger companies even having invested in their own big factory facilities there, to ensure their production is running smoothly.

What we have learnt from the current geopolitical climate of the world (as of spring 2023) and the war in Ukraine, is that the traditional strategy will leave your production vulnerable. For multiple reasons. Hence why more and more are making exit strategies to diversify their sourcing and production.

With the mobilization of more than 43 billion euros, the European Chip Act will not only set measures in place to be able to respond faster to any future disturbances in the supply chain. It will also fund production as well as support innovation in semiconductors with “the Horizon Europe” and “Digital Europe programme”.

• “Strengthen Europe’s research and technology leadership towards smaller and faster chips”
• “Put in place a framework to increase production capacity to 20% of the global market by 2030.”
• “Build and reinforce capacity to innovate in the design and manufacturing and packaging of advanced chips.”
• “Develop an in-depth understanding of the global semiconductor supply chains.”
• “Address the skills shortage, attract new talents and support the emergence of a skilled workforce”.

These actions will be taken in place, to avoid another semiconductor shortage. Which is very important since industry experts expect demands for chips to double by 2030. With the potential to leave healthcare- and the defence section vulnerable amongst others, due to the heavy increasing use of semiconductor technology.

You can read more in depth about the European Chips Act here