"With the Tech Sovereignty Package presented today, the European Commission sends an important signal regarding the strengthening of Europe’s technological competitiveness and resilience. In light of rising geopolitical tensions, it is right to place a stronger focus on key future technologies within the framework of European industrial policy. The crucial task now will be to consistently align the various initiatives within the package with the needs of European industry, thereby sustainably bolstering innovation, investment, and value creation in Europe.

For the automotive industry, the focus lies particularly on Chips Act II. High-performance semiconductors are indispensable for the transformation toward climate-neutral, connected, and software-defined mobility. They form the technological foundation for numerous future applications. Therefore they are a decisive factor for the competitiveness of Europe as an automotive hub.

On the positive side, Chips Act II takes actual European semiconductor requirements into account far more effectively than previous initiatives. Equally welcome is the strategic evolution of the approach: shifting away from the exclusive subsidization of additional production capacities toward strengthening the resilience and sovereignty of the entire European semiconductor ecosystem. Funding measures should be consistently aligned with the needs of key European industries and targeted where they generate the greatest impact in terms of value creation and security of supply.  

At the same time, the new Chips Act entails a paradigm shift. In addition to fostering investment and innovation, the draft legislation provides for far-reaching powers to intervene in market processes and corporate decision-making—provisions that should be subject to critical scrutiny. These include, among other measures, the prioritization of orders in times of crisis, extensive reporting obligations throughout the supply chain, and other instruments for market steering. The fact remains: the semiconductor industry is characterized by highly complex and globally interconnected supply chains. External interventions in these systems, as well as attempts of political steering, carry the risk of misdirection and could disrupt existing supply relationships and established market mechanisms. Particularly within a globally integrated ecosystem, the strengthening of resilience should therefore be achieved primarily through investment, innovation, and a reliable regulatory framework.

Overall, the principle holds true: the European semiconductor industry is part of a highly integrated international ecosystem. Therefore, in addition to strengthening its own capacities, the European Union should prioritize open markets, international partnerships, and fair trade relations. In the long run, Europe’s competitiveness will not be secured through protectionism, but rather through innovation-friendly framework conditions that reflect the realities faced by businesses. As negotiations proceed, the Council, Parliament, and Commission are called upon to consistently place these priorities at the very center of their efforts."