The EU Chips Act is a Failure

The EU Chips Act is failing to secure Europe's semiconductor future because it relies on the flawed, overly ambitious 2013 strategy of doubling market share to 20% by 2030. Despite the hype, the initiative provides minimal direct funding and prioritizes leading-edge nodes at the expense of critical mature-node production. The Nexperia crisis serves as a stark warning, demonstrating how ignoring packaging and mature-node stability leaves the automotive and industrial sectors vulnerable to geopolitical shocks. Rather than chasing the latest AI trends, European policymakers must shift toward a realistic, risk-tested industrial strategy. Adopting a dual-track model—similar to Japan’s approach with TSMC and Rapidus—could better balance high-end innovation with the essential, boring infrastructure required for true supply chain resilience. A fundamental reassessment of metrics and priorities is necessary to avoid repeating past mistakes in the upcoming Chips Act 2.0.