Under 10 % of global semiconductor production occurs in Europe, which is limited to the larger, so-
called trailing-edge chips (at 22 nanometres and above). Only two companies in East Asia, TSMC in
Taiwan and Samsung in South Korea, are capable of manufacturing so-called cutting-edge chips (at
2 to 7 nanometres), while the necessary equipment for that production is produced solely in Europe,
by ASML in the Netherlands. The EU’s share of global chip revenues has gone down from 20 % in the
1990s to 10 % presently. Without rapid and significant investments, the EU’s global market share
would drop to below 5 %, putting its industrial competitiveness and technological autonomy
further at risk. A severe disruption in the supply chain could deplete Europe’s limited chip reserves
within a few weeks, grinding many European industries to a halt.