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Mobilizing 43 billion euros! Is Europe’s semiconductor industry making a comeback?
Europe was once an important origin of early development in the global semiconductor industry, with top-notch technological capabilities and manufacturing capacities. Semiconductor industry giants like Infineon, STMicroelectronics, NXP, and ASML, which holds a monopoly position in the lithography machine market, are all European companies. However, subsequent operational decisions by European enterprises directly led to their fall from the pinnacle of the semiconductor world. Chip Manufacturing Capacity: One-Quarter to One-Tenth of Global Total 0 1 In the 1990s, Europe held a 44% share of the global chip market. However, around 2005, European semiconductor manufacturers began relocating their supply chains to East Asia in search of investment opportunities and to reduce labor costs. As a result, their market share gradually shrank, and their manufacturing capabilities fell behind. While the global semiconductor industry prospered for a long period, Europe’s share of global capacity dropped from 24% in 2000 to the current 10%. Since…