Global Electronics Association Calls for Expansion of EU Chips Act to Support Critical Industries
Key Summary
• The Global Electronics Association urges the EU to expand the Chips Act to cover the full electronics value chain
• Europe’s decline in PCB, PCBA, and system-level manufacturing has created major supply chain vulnerabilities
• Critical industries such as defence, automotive, industrial automation, and AI depend on trusted system-level electronics
• The Association calls for EU funding, streamlined support for SMEs, and a formal industry–policymaker dialogue
• A broader European Electronics Strategy is needed to achieve true resilience, innovation, and strategic autonomy
The Global Electronics Association is urging the European Commission to expand the scope of the EU Chips Act, warning that the current focus on semiconductor fabrication alone leaves Europe exposed to significant supply chain vulnerabilities for critical European industries. In its contribution to the Commission’s review of the Chips Act, the Association stresses that Europe cannot achieve technological resilience without rebuilding the full electronics value chain, including system level packaging, especially Printed Circuit Boards (PCBs), PCB Assemblies (PCBAs), and final assembly and test.
The Association notes that Europe’s capability to manufacture these essential technologies has eroded dramatically over the past two decades, creating critical dependencies on non-EU suppliers. This trend undermines Europe’s economic security and threatens the competitiveness of industries such as defence, automotive, AI data centres, and industrial automation—sectors that rely heavily on high-performance, trusted electronics systems. While the Chips Act has stimulated progress in semiconductor fabrication, it has not addressed the downstream capabilities needed to translate chips into finished, deployable technologies.
To reverse this decline, the Global Electronics Association is calling for a broader, silicon-to-systems strategy that complements the existing Act. This includes dedicated EU funding for system level packaging, especially PCB, PCBA, and final assembly and test; simplified financial support for small and mid-sized electronics manufacturers; and the creation of a permanent dialogue between industry and policymakers to identify gaps and coordinate action. The Association is also urging the EU to introduce a comprehensive European Electronics Strategy aligned with defence readiness and economic security objectives.
The Chips Act was an important first step, but Europe must now address the full electronics ecosystem. Without strengthening system-level manufacturing capacity, the EU risks building world-class chips that cannot be integrated into systems made in Europe—limiting resilience, innovation, and strategic autonomy.
View full position and recommendations.
For further information contact Alison James, senior director, European Government Relations and for technical expertise, Dr, Peter Tranitz, senior director, Technology Solutions.
Because the current Act focuses mainly on semiconductor fabrication and does not address system-level manufacturing. Without strengthening PCBs, PCBAs, and final assembly, Europe cannot fully benefit from chip investments or ensure supply chain resilience for critical industries.
Europe’s PCB, PCBA, and assembly capacity has eroded significantly over the last two decades. This has increased dependency on non-EU suppliers and reduced Europe’s ability to produce trusted, high-performance electronics systems domestically.
Defence, automotive, AI data centres, and industrial automation are among the most vulnerable. These sectors rely on reliable, secure system-level electronics that cannot be guaranteed if manufacturing is outsourced outside the EU.
Key recommendations include dedicated EU funding for PCB, PCBA, and final assembly; simplified financial support for SMEs; and creation of a standing dialogue to identify manufacturing gaps and coordinate policy and investment responses.
A comprehensive strategy aligns manufacturing, security, and economic goals. Strengthening system-level capacity ensures that advanced chips can be integrated into systems built in Europe, supporting resilience, competitiveness, and strategic autonomy.