Europe has some leading companies in the field of less advanced microchips, including Germany’s Infineon, the Dutch NXP and French-Italian STMicroelectronics. These firms cater to the needs of Europe’s powerful car industry.
But the auditors wrote that demand in Europe “is currently growing more quickly than EU-based chipmakers can supply it.” In 2024, the EU ran a €9.8 billion deficit with China on chips; it also had deficits with other chipmaking hubs like Taiwan.
Globally, Taiwan has emerged as the leading hub for more advanced chips, which have smaller nodes than low-tech varieties and are used in smartphones and data centers. But demand remains high for low-tech chips as well, including to power the transition to more sustainable, less energy-consuming technologies.
The auditors warned that the gap Europe has with other regions will only widen. “As this type of microchip is needed for technology associated with the green transition, this trade deficit is likely to increase in the future.”
As the EU’s independent auditor, the Court of Auditors reviews the EU’s finances, its spending and the implementation of its policies.
The auditors’ message arrives as Brussels gets ready to review its Chips Act, which formulated the goal of 20 percent by 2030. The auditors dismissed that goal as “aspirational” and not grounded in reality.
