An Coimisiún Comhairleach um Athruithe Tionsclaíocha (CCMI) - Related Opinions

EU Heads of State or Government, meeting in Versailles on 11 March, committed to “bolster European defence capabilities” in light of the Russian military aggression against Ukraine. They agreed to: 1) increase defence expenditures; 2) step up cooperation through joint projects; 3) close shortfalls and meet capability objectives; 4) boost innovation including through civil/military synergies; and 5) strengthen and develop our defence industry, including SMEs. Moreover, they invited “the Commission, in coordination with the European Defence Agency, to put forward an analysis of the defence investment gaps by mid-May and to propose any further initiative necessary to strengthen the European defence industrial and technological base.” The tasking was also integrated in the Strategic Compass on Security and Defence adopted by the Council and endorsed by the European Council in March 2022.

Semiconductor chips are the essential building blocks of digital and digitised products. From smartphones and cars, through critical applications and infrastructures for healthcare, energy, mobility, communications and industrial automation, chips are central to the modern digital economy. They determine performance characteristics of digital systems, among them security and energy-efficiency – essential to the EU’s digital and green transitions. They are also crucial to key digital technologies of the future, including artificial intelligence (AI), 5G and edge computing, as set out in the EU’s 2030 Digital Decade.  Put simply, there is no “digital” without chips.

Achieving the digital transition is a fundamental challenge for the European Union in order to maintain a high level of business competitiveness. Winning this challenge is also decisive for global competition, for what could be defined as the maintenance of "digital sovereignty".

Already for some time and especially since spring 2021, widespread and abrupt chip shortages have been dragging down industrial output across the EU. Sectors like automotive, consumer electronics, 5G technologies, industrial equipment, and medical devices are severely impacted. The drop comes despite a surge in manufacturers' order books and is seriously hampering the post-COVID economic recovery.