European chip sector unites in Semicon Coalition
Nine European countries, including the Netherlands, want to strengthen the chip industry and support European assets.
Published on March 12, 2025
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Nine European countries, including the Netherlands, want to strengthen the chip industry with the 'Semicon Coalition'. Europe is striving for self-sufficiency and innovation, so it no longer depends on Asian producers. Germany is leading the way with substantial subsidies, while the ambitions of the previous Chips Act are being adjusted. Plans to increase European chip production are now being approached more realistically, hoping to stimulate independence and innovation. Interested? Read more about how this pact can help Europe in the technological race.
European chip alliance forms new front
This morning, nine European countries, including the Netherlands, France, Germany, and Belgium, signed a symbolic agreement in Brussels to strengthen the European semiconductor industry. This 'Semicon Coalition' has a clear goal: Europe must become more self-sufficient in chip production. Dutch Minister of Economic Affairs Dirk Beljaarts emphasizes a crucial strategic advantage: the Netherlands is no longer alone in discussing exporting ASML's chip machines with the United States. This new alliance comes at a critical moment - the global chip market is expected to grow by 9.5% this year, mainly driven by the demand for AI chips.
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Germany takes the lead
Germany is leading Europe's chip ambitions with billions in subsidies for new factories. The most concrete project is ESMC, a joint venture between the Taiwanese chip manufacturer TSMC and European partners NXP, Infineon and Bosch. At the same time, there have been setbacks: Intel has temporarily frozen its planned mega-project in Magdeburg, for which Germany had reserved 10 billion euros. This development has caused a domino effect - Polish and Italian plans for Intel factories have also been put on hold. Poland is keeping the location, energy supply, and labor force available in the hope that another chip manufacturer will take over the project.
Revised ambitions after COVID-19
The European investment wave in semiconductors stemmed from hard lessons learned during the COVID-19 crisis. Serious production problems in the automotive industry due to chip shortages made the EU painfully aware of its dependence on Asian chips, mainly from TSMC. In 2022, the EU launched a 5-year €43 billion subsidy plan to lure foreign chip manufacturers to Europe. The original goal was ambitious: to increase the European contribution to worldwide chip production from 8% to 20%. After Intel withdrew, this objective proved unrealistic. The Semicon Coalition is now advocating dropping this target percentage in the successor to the Chips Act.