Semiconductor autonomy of the EU in the context of the China - Taiwan conflict: Is the EU going to be self-sufficient?

The significance of semiconductors in today’s everyday life is infinite; they are often referred to as the “brains” of today's technology. The thesis explores the pivotal role of the industry, emphasizing the fierce competition and significant investments by countries. It starts with an explanation of the terminology, stages in the value chain, and dependencies within the supply chain. The key findings reveal that the European Union is currently heavily reliant on Asian producers in the global semiconductor industry. This dependence poses significant risks amidst geopolitical tensions, especially a potential conflict between China and Taiwan. The thesis briefly examines the implication of a potential conflict in this region. Chapter 4 focuses on the EU's quest for semiconductor autonomy, analyzing its current position, strengths, vulnerabilities, and reliance on East Asian players. This quest is happening in the middle of the trade war between the United States and China. Consequently, the thesis evaluates the potential effectiveness of the EU Chips Ac in achieving self-sufficiency while mostly maintaining status quo in relations with major players in the industry, notably the USA. The EU is still balancing between the national champion and the EU’s champion, which is preventing the creation of economies of scale. To break the deadlock, some recommendations are given, but they suggest that the EU needs stronger policy and more cohesive strategies to overcome the challenges. Otherwise, the history is repeating, and this will be another weak policy, and the technological gap between the EU and the USA and/or East Asia will continue to increase. In the end, due to the complexity of the topic and various related issues, there are plenty of options for future research.