According to the microelectronics industry trend report recently released by (ZVEI), the German electronics industry association, the global semiconductor market will grow at an annual rate of 6.5% before 2025, an increase of 1 percentage point over the past five years. However, the global market share of European semiconductors will fall from 9 per cent today to 8 per cent in 2025.
The European auto industry has recently suffered from chip shortages, a trend that means Europe will become more dependent on wafer foundry in China, Japan and South Korea. Ji Singh (Pat Gelsinger), the chief executive of Intel, the leader of the US chip industry, recently predicted that the problem of chip supply falling short of demand will continue until 2023.
To reduce its dependence on Asia, Europe is trying to build its own semiconductor industry chain. According to the plan of European Union Executive Commissioner Bredon (Thierry Breton), Europe should have the next generation of advanced process wafer factories by 2030, and the chip market share will increase to 20%.
The low market share of chips in Europe is also related to the outsourcing of business by semiconductor manufacturers. In 2015, there were 2% of the chips produced locally in Europe, up from 55% last year.
Recently, however, the European semiconductor industry is catching up. Bosch (Bosch), a big auto parts manufacturer, opened its new factory in Dresden (Dresden) in Germany at the beginning of this month. Infineon (Infineon) 's new factory in Virac (Villach) in Austria is about to begin mass production, but its output is still a long way from Asia.
