europe's semiconductor independence: intel urges bolder strategy amid us-china tensions
Brussels, Sunday, 27 April 2025.
intel’s european government affairs vp, hendrik bourgeois, is pushing for a robust, long-term eu semiconductor strategy. he stresses that europe needs to reduce reliance on external suppliers in light of shifting global politics. the call comes as europe faces challenges in matching the financial incentives offered by the us chips act. bourgeois advocates for greater eu-wide collaboration and a focus on ‘internationalism, innovation, and investment’ to secure europe’s place in the semiconductor industry.
intel’s vision for european semiconductor leadership
Hendrik Bourgeois, Intel’s VP, advocates strengthening economic ties between the EU, the UK, Canada, Japan, and South Korea [1]. He suggests Europe should remain open to economic cooperation with China, balancing competitiveness and growth [1]. Bourgeois believes the EU should avoid being a ‘jack of all trades’ in the semiconductor industry [1]. He champions a ‘three I’s’ approach: internationalism, innovation, and investment [1]. His remarks at the SEMI Industry Strategy Symposium Europe in Sopot, Poland, underscore the urgency for a unified European strategy [1].
challenges and investment landscape
The EU Chips Act, according to Bourgeois, mainly facilitates national subsidies rather than creating new financial resources like the U.S. Chips Act, which has $52 billion available [1]. He urges the EU to pool financial resources to enable large-scale investments in semiconductor manufacturing [1]. Europe is strategically investing in AI, with policymakers committing €200 billion to a broader tech strategy that includes semiconductors, quantum computing, cloud infrastructure, and data storage [7]. European governments have allocated €7 billion specifically for quantum computing research [7].
industry dynamics and strategic acquisitions
Global semiconductor manufacturing equipment sales saw a 10% increase in 2024, reaching $117.1 billion [3]. China led the market with a 35% spending increase, totaling $49.6 billion, while Europe experienced a 25% decline to $4.9 billion [3]. Mergers and acquisitions reflect strategic moves within the sector. Infineon Technologies is set to acquire Marvell Technology’s Automotive Ethernet business for $2.5 billion [3]. The Marvell business is projected to generate $225–250 million in revenue in 2025, boasting a gross margin of approximately 60% [3].
stm’s restructuring and market outlook
STMicroelectronics (STM) reported Q1 2025 net revenues of $2.52 billion, a 24.2% sequential decrease and a 27.3% year-over-year decline [3]. STM anticipates Q2 net revenues to reach $2.71 billion, a 7.7% sequential increase [3]. The company is not providing full-year 2025 revenue guidance [3]. STM plans to reduce its workforce by up to 2,800 jobs globally over three years through voluntary departures [3]. These measures aim to achieve annual savings in the high triple-digit million-dollar range by the end of 2027 [3].