semiconductors

EU Semiconductor Policy: What ESMC Reveals About Europe’s Joint Venture Strategy

The Taiwan Semiconductor Manufacturing Company (TSMC), which produces the most advanced chips in the world, is positioning itself in a strategic position in the global economy. On one hand, the geopolitical tensions and domestic resource constraints are pushing TSMC to diversify manufacturing overseas. On the other, the European Union seeks to attract investment through the European Chips Act to reduce dependence on external suppliers. It has resulted in the EU–TSMC joint venture “European Semiconductor Manufacturing Company (ESMC)”, a pilot initiative to assess whether TSMC’s efficient production model can be adopted to Europe. Although the European Chips Act provides subsidies, it fails to address the underlying structural barrier. The sustained EU–TSMC semiconductor ecosystem cannot be built with financial support alone, but requires comprehensive reforms to address regulatory fragmentation across the EU’s single market and knowledge transfer through TSMC’s production and management model. Therefore, to strengthen EU–TSMC cooperation, prioritising regulatory simplification, reducing administrative fragmentation and establishing an exchange and training scheme that facilitates efficiency and training programmes that support operational learning from TSMC’s business model.

The EU’s Semiconductor Dilemma: What Does it Take to Regain Strategic Autonomy?

To counter a looming change in balance of global power, the US and the EU have adopted respective de-risking measures, whereby supply chains are diversified and onshored to decrease strategic dependencies against China’s geoeconomic leverage. As China’s semiconductor ecosystem grows more strategic, and US measures more pressing, the EU must wager its position between a democratic ally to Washington and a willing trade partner to Beijing. More importantly, to preserve its technological advantage in the semiconductor industry, the EU needs to regain its strategic autonomy.

The EU’s Strategic Role in the Global Semiconductor Supply Chain and its Implications for Clean Energy

As our global economy becomes increasingly digital, AI-driven, and reliant on 5G networks, the demand for semiconductors will only continue to surge. These components are not only fundamental to technological advancement but crucial for geopolitical stability.

Japan and the European Chips Act

Japan is investing heavily to become a major producer of high-end electronic components, while the EU is looking to secure resilient supply chains. This might be the perfect opportunity for the EU and Japan to strengthen their ties and form a closer bond, truly realizing their respective and joint potential.

Eyes on the Taiwan Strait: Affirming EU-Taiwan Trade Relations Through a Security Lens

In an ever-changing geopolitical climate, trade relations between the EU and Taiwan are being viewed through a microscope. Rising tensions between China and the United States have increasingly made security across the Taiwan Strait a top priority for EU lawmakers, which has become evident in the EU’s 2021 Indo-Pacific Strategy and its implementation. Taiwan is a vital economic trade partner for the EU and by assessing the history, trends, and current status of the trade relationship between the two partners, the EU can do better to economically engage with Taiwan in the future. Remaining a partner in East Asia in promoting shared values such as “democracy, freedom, human rights and the rule of law”, Taiwan and the EU are looking for channels to affirm their trade relationship in an increasingly delicate geopolitical climate.

A Taiwanese perspective on the Semiconductor Industry: Maintaining the Competitive Edge

Holding a near monopoly in semiconductor manufacturing, Taiwan should seek to sustain the global supply chain and maintain its “silicon shield”. In particular by expanding its outreach abroad through cooperation with other partners such as the EU.