europe bets big on chips: why semiconductors are the bedrock of our digital future
Brussels, Friday, 19 September 2025.
The European Chips Act underscores the essential role of semiconductors in modern society. Semiconductor research is paramount, as our digital infrastructure relies on these chips. The implications for major players like ASML, TSMC, and NVIDIA are significant. A research group in Halmstad, Sweden, is developing advanced optical sensors based on nanowires, one thousand times thinner than a strand of hair. These sensors can detect specific portions of infrared radiation, with applications ranging from defense to agriculture. This highlights the EU’s commitment to bolstering its semiconductor capabilities.
talent shortage poses a threat
A significant challenge to Europe’s semiconductor ambitions is a growing talent shortage [2]. The European Chips Skills Academy (ECSA) reports that talent shortages are becoming a major bottleneck in the industry [2]. The semiconductor industry anticipates 271,400 job vacancies by 2030 [2]. An additional 155,900 jobs are expected to be created between now and then [2]. This gap is attributed to a mismatch between academic training and industry needs [2]. Dedicated master’s programs are being developed to bridge this divide, ensuring a skilled workforce for the future [2].
eu investments and initiatives
The Chips Joint Undertaking (Chips JU) supports semiconductor research, development, and manufacturing within Europe [4]. Launched by the European Union Council Regulation No 2021/1085, and amended in September 2023, it’s a key part of the Chips for Europe Initiative [4]. The initiative addresses semiconductor shortages and strengthens Europe’s digital autonomy [4]. It involves nearly €11 billion in funding from the EU, national/regional bodies, and private industry [4]. These investments aim to foster a robust semiconductor ecosystem across the continent [1][4].
malta emerges as a semiconductor hub
Malta is strategically positioning itself within the semiconductor landscape [6]. The Malta Semiconductor Competence Center (MSCC) recently launched with an €8 million budget, co-funded by Chips JU and Malta Enterprise [4][6]. The MSCC is part of Malta’s Vision 20250 plan to expand its role in the global semiconductor value chain [6]. Malta’s semiconductor sector already generates over €1.2 billion in exports and supports over 4,000 jobs [6]. This initiative aims to attract top semiconductor talent and foster further growth in the region [6].
market response and stock performance
The European market responded positively to recent developments in the semiconductor sector [5]. On September 18, 2025, European shares closed higher, propelled by chipmakers and the U.S. Federal Reserve’s policy easing [5]. The STOXX 600 index increased by 0.79%, closing at 554.97 points [5]. The technology index saw a significant rise of 4.1%, marking its largest single-day gain since April 23 [5]. Individual companies like BE Semiconductor, ASML, and ASMI experienced surges of 7.9%, 7.7%, and 8.7% respectively [5].
new chip technology breakthroughs
Innovative research continues to drive advancements in semiconductor technology [7]. The University of Twente, IBM Research Europe, and Toyota Motor Europe have jointly developed chips capable of ‘listening’ [7]. This new approach enables speech recognition without the need for extensive software or energy-intensive processors [7]. The research, published in Nature, highlights a Reconfigurable Nonlinear Processing Unit (RNPU) combined with a novel IBM chip [7]. This technology could revolutionize applications such as hearing aids and sensor technology [7].