Only 11.7% is expected to increase its percentage in the World Market Market by the European Union by 2030, far from the target, which had set up 20% by the end of the decade. According to a new report, published by the European Court of Auditors (ESA), it is extremely unlikely that the EU will achieve its goal of a 20% share in the global microcircuit market by 2030.

Although the act of microcircuits (Chips ACT), introduced by the EU in 2022, marked a new dynamic in the European microchip sector, investments in this context are – according to the report – unlikely to significantly enhance the EU’s position in the sector.

According to the European Court of Auditors, it is extremely unlikely that the EU will achieve the goal of a 20% share in the microcircuit market by 2030

“EU strategy for the digital decade provides the aim for the European Union to obtain until the 2030 share 20 % in the world’s production of sustainable microcircuits in value. The European Commission has made satisfactory progress in implementing its strategy ”, It mentions the EAW, finding a gap between ambitions and reality, which must be bridged.

“It is time for the EU to see reality in relation to its microcircuit strategy”, Annemie Turtelboom, a member of the EAW and responsible for the audit, said. “This is an area in which developments are rapid and geopolitical competition relentless and we are far behind in achieving our ambitions,” added herself.

Investment

Estimated funding in the framework of the microcircuits by 2030 is € 86 billion and the Commission is only responsible for 5% (€ 4.5 billion) of this amount. Member States and the industry are expected to contribute the remaining amount.

For the sake of comparison, the world’s leading microcircuit manufacturers had budgeted for just three years (2020-2023) investments of € 405 billion, which significantly overshadows the financial power of the operation for microcircuits.

However, as the ECA points out, the Commission is not instructed to coordinate national investment at EU level in order to ensure their alignment with the objectives of the microcircuit operation. Also, the act does not clearly identify target prices and monitoring and it is not easy to determine if the current levels of demand for conventional microcircuits are taken into account.

Overall, the ECA has found that the act of microcircuits is extremely unlikely to contribute to a significant increase in the EU share of the microcircuit market or the 20%target price. Indeed, according to forecasts by the European Commission itself, published in July 2024, although a significant increase in production capacity is expected, the total EU’s share of the global chain in a rapidly growing market will only grow only from 9.8% to 20.7% at 20.7%.