📊Executive Summary

The European Union's ambition to reduce reliance on Taiwanese semiconductors poses significant risks to its supply chain. The article discusses the EU's Chips Act, which aims to boost local semiconductor production to 20% market share by 2030, but warns that this could inadvertently increase geopolitical tensions with China and Taiwan. The EU's efforts to de-risk from Taiwan may not shield it from potential conflicts in the Taiwan Strait, which are critical to global supply chains. The high costs associated with semiconductor manufacturing and the current dominance of Taiwan's TSMC and South Korea's Samsung complicate the EU's strategy. The article emphasizes that Europe must carefully consider its approach to semiconductor independence, as it lacks capacity in advanced chip production, which Taiwan currently leads....