May 2, 2025 /SemiMedia/ — The European Union is unlikely to achieve its goal of capturing 20% of the global semiconductor market by 2030, according to a recent report by the European Court of Auditors.

While the EU Chips Act, introduced in 2022, aimed to invigorate the region’s semiconductor industry, auditors warn that current investment levels and policy execution are insufficient to meet the ambitious target. Achieving the 20% share would require quadrupling Europe’s chip production capacity within six years—a pace far from current trajectories.

Only €4.5 billion of the expected €86 billion funding is directly committed by the European Commission, with the remainder relying on contributions from member states and private firms. This decentralized funding model, combined with slow project deployment, is seen as a key bottleneck.

In contrast, leading global chipmakers have collectively invested over €400 billion in just three years, mainly across Asia and the U.S., dwarfing Europe’s efforts. Forecasts now suggest that Europe’s global chip market share could reach just 11.7% by 2030.

The report also highlights structural barriers, including high energy costs, reliance on imported materials and equipment, geopolitical instability, and a shortage of skilled labor. These challenges, auditors say, may undermine the effectiveness of the Chips Act and delay key manufacturing projects.

The European Court of Auditors recommends a comprehensive review of the EU’s chip strategy, calling for realistic target adjustments, stronger coordination across member states, and better tracking of industrial data to align policy with actual global dynamics.