📊Executive Summary

The report highlights a significant decline in Europe's electronics manufacturing base, which has dropped to just 11.6% of global production. This decline poses a critical risk to the region's defense readiness as the electronics content in defense equipment is projected to rise from 17% in 2023 to 25% by 2035-2040. The report emphasizes the urgent need for Europe to strengthen its electronics manufacturing ecosystem to mitigate vulnerabilities in supply chains for essential defense technologies like drones and radar systems. Recommendations include policy changes and increased support for local manufacturing to ensure strategic autonomy and resilience in the face of geopolitical shifts....