The Silicon Dream: Europe’s Bid in the Semiconductor Race

By Antonio Calcara and Ivan Zaccagnini

21.5.2024

LUISS School of Government Working Paper Series

Semiconductors are the backbone of today’s digital world. From smartphones and laptops to medical devices, automotive systems, and missiles, semiconductors are an essential part of every electronic and digital product. Semiconductors are also at the centre of geopolitical competition, with several great powers seeking to prevent competitors from controlling their value chains, while at the same time pursuing industrial and technological policy plans to increase their competitiveness in the sector and make them less vulnerable to external interference. Taking stock of these developments, this working paper focuses on four aspects: first, it attempts to give a historical perspective to the semiconductor debate. Second, it maps the semiconductor value chain. Third, it focuses on the competition between the US and China in this sector. The fourth and final section reflects on the implications for Europe.

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