Strengthening Europe's Chips Industry: Key Insights from the Industrial Alliance at EFECS 2024

Sponsored by: ALLPROS.eu project
11 Dec 2024 | News

At EFECS 2024, the ALLPROS.eu project unveiled the first outcomes of the Industrial Alliance on Processors and Semiconductor Technologies, highlighting the progress of its three strategic working groups.

At this year's European Forum for Electronic Components and Systems (EFECS) event taking place on the 5-6 December 2024 in Ghent, key updates around some early findings regarding the highly anticipated Industrial Alliance on Processors and Semiconductor Technologies, launched by the European Commission, were revealed to the public. The alliance aims to identify the existing gaps and the technology developments necessary for the competitiveness of companies and research and technology organisations active in the sector in the EU, including smaller European actors. Officially operational since July 2024, the Alliance complements the European Chips Act that came into force in September 2023 to strengthen collaboration across existing and future initiatives. The Alliance has already united over 100 organisations, which are now identifying practical actions of delivery under the first three strategic Working Groups, Skills, Supply Chains & PFAS, with more to kick start in the future. During EFECS2024, the first outcomes of this collaboration were presented, by Trust-IT Services’ CEO  Silvana Muscella in her capacity of ALLPROS.eu project coordinator offering a glimpse into some early findings of these initial working groups.

“We are delighted that the Industrial Alliance that has been incubating for a while has now become a reality an initiative, thanks to the European Commission, and it is exciting to see the ball is now in all of the stakeholders’ court to contribute the drive and relevant goals for Europe and the future of the semiconductor industry. We promise as the secretariat of the Alliance to put forward our best efforts to promote the strategy of the Alliance and look forward to seeing the results materialize practically in 2025. “ 


Source: Simon Pugh Photography

The event also served as a platform for discussing the next steps to further strengthen Europe's semiconductor industry and to encourage more organisations to join the Alliance.

The Industrial Alliance: joining forces to strengthen Europe's chips industry

The semiconductor shortage and ongoing geopolitical instability have led global powers to focus on enhancing self-reliance in semiconductor manufacturing, with Europe being no exception. With the EU Chips Act coming into force in 2023, the European Union has intensified efforts to achieve the five strategic objectives outlined in the legislation. These include strengthening research, boosting design and pilot lines capabilities, addressing skills shortages, enhancing production capacity, and reinforcing Europe's position in the global semiconductor value chain.

However, policy alone is insufficient without active participation from industry players, who are directly affected by the challenges and disruptions in the semiconductor supply chain.

To address this gap, the Industrial Alliance was launched as a complement to the EU Chips Act, bringing together key stakeholders in the semiconductor sector. The Alliance envisions a leading role for the industry representatives to ensure their needs and challenges are central to the discussion. What sets the Alliance apart is the open membership not only for the major players in semiconductor manufacturing but also for SMEs, research centers, associations, and RTOs. This broad invitation is crucial in developing tangible solutions, offering a more holistic perspective on the issues and actions required to strengthen the entire sector.

EFECS 2024
Source: Simon Pugh Photography

Three Strategic Working Groups Driving the Alliance's Vision Forward

Collaboration within the Alliance takes place through strategic working groups. Currently, the three working groups launched, which will have two co-chairs and are supported by the European Commission, focus on addressing the skills shortage, making the semiconductor supply chain more resilient, and identifying sustainable alternatives to per- and polyfluoroalkyl substances (PFAS). These groups are tasked with mapping out a clear path for cooperation and defining collective actions to tackle the sector's pressing challenges.

The working group on Skills targets the longstanding talent shortage in the semiconductor industry. With an estimated 75,390 unfilled positions by 2030 (ECSA Report, 2024), this group unites efforts to map existing initiatives and encourage the development of new ones. Since beginning its work last spring, the group has already produced a Blueprint report with seven key recommendations aimed at strengthening the talent pool for the semiconductor sector.

The working group on Supply Chains focuses on assessing the current state of the semiconductor supply chain, identifying potential risks, dependencies, and opportunities for enhancing Europe’s resilience in the global market.

Lastly, the working group on PFAS is dedicated to supporting the transition to sustainable alternatives. It addresses the balance between industry needs and risk mitigation to ensure a sustainable future for semiconductor manufacturing.

The Alliance and its working groups are supported by the EU-funded Digital Europe Programme CSA ALLPROS.eu project, which serves as the Secretariat to the Alliance led by a set of European organisations. Operating as an inclusive forum driven by stakeholders for stakeholders, the Alliance benefits from the European Commission’s as a facilitator, ensuring that all voices are heard and that tangible follow-up actions are taken.

Join the Alliance: Shape the EU's Semiconductor Futurelogo

In the coming months, the working groups will harness the expertise of their members to define common actions, focusing on setting realistic objectives and implementing strategies that will enhance Europe’s overall potential in the semiconductor sector. The aim is to secure resilience and foster synergy among all organizations involved in the chips industry.

At this stage, any organisation within the semiconductor industry meeting the eligibility criteria can apply to join the Alliance, subject to approval by the European Commission, which has confirmed that the Alliance will remain open to new members who wish to contribute to its efforts.

The Industrial Alliance on Processors and Semiconductor Technologies is poised to play a key role in strengthening Europe's position on the global stage. By fostering collaboration among a diverse range of stakeholders, the Alliance is addressing critical challenges and builds a strong foundation for the future of semiconductor manufacturing in Europe. As it continues to grow and evolve, the Alliance welcomes new members who share the commitment to a more resilient, competitive, and sustainable semiconductor ecosystem. 

For further information about the Alliance and how to get involved contact the following email addresses: [email protected] and copying also [email protected].


 

Never miss an update from Science|Business:   Newsletter sign-up