Can technological sovereignty secure Europe’s future? While the United States is using trade tools to foster economic security, the European Union is pursuing “technological sovereignty” to boost its global competitiveness. Yet the complexity of the technology supply chain poses significant challenges to both approaches. “Sovereignty” is a means to an end – Europe’s ambition should be to grow and lead in technological innovation. These sovereignty approaches should not result in isolation or redundant efforts but should instead focus on strategic investments to promote innovation and global partnerships.
Chasing Sovereignty
As a US semiconductor firm with long-standing investments in Europe, we recognize the EU ambition to strengthen its digital ecosystem. Although finding European alternatives could lead to some increased regional investments in the short term, we believe a more pragmatic and collaborative approach would better serve Europe’s long-term competitiveness.
Instead of aiming to build the technology stack independently, in particular for semiconductors, Europe can accelerate its innovation capacity through trusted partnerships in areas where domestic capabilities are currently limited. Leveraging its own strengths (e.g., excellence in semiconductor R&D and machinery) and combining these with the advanced manufacturing capabilities of partners, such as Intel in Ireland, would help the EU achieve its resilience goals, while remaining globally competitive.
Towards European Tech Leadership
Technological leadership goals in the EU go beyond sovereignty and aspirational self-reliance. They require excellence across the entire industry, from research and innovation to advanced manufacturing, and active participation in shaping global tech ecosystems. By building on local strengths, investing in world-class talent, and fostering globally integrated value chains, the EU can establish itself as a competitive tech leader.
The semiconductor industry illustrates this well. Global value chains, international talent, local strengths, and borderless innovation have been critical to Intel’s growth. European champions like imec, ASML, Ericsson, Nokia or SAP have equally benefitted from this openness. Attempts to fully localize supply chains risks undercutting competitiveness.
Investing Strategically Together
Competitiveness requires unifying fragmented national approaches into a forward-looking EU industrial strategy backed by a substantial EU budget. That is the way to excel at the technological frontier – semiconductors, AI and other critical innovations. Intel has invested €30 billion in Ireland over the last 35 years: our “fab” is the only leading-edge semiconductor manufacturing facility in Europe and it exemplifies how global investment fuels regional competitiveness, creates direct and indirect jobs, and helps Europe’s economy grow. To replicate this success across industrial verticals, the next EU Multiannual Financial Framework must back strategic projects developed in close coordination between policymakers and industry.
Equally important is having a regulatory environment that encourages long-term investment: low energy costs, coherent rules and straightforward approval processes. These conditions would enable European companies to foster more partnerships open to innovators from around the world. That is why simplification initiatives like the announced “Digital Package” are critical for creating innovation hubs that drive technological leadership.
A New Vision
As Europe looks to the future, it must embrace a vision of competitiveness that redefines sovereignty as a pathway to technological innovation. The goal should be to create the conditions for industry to thrive – attracting investment, streamlining regulation, and addressing structural barriers like high energy costs. Technological leadership would build on this foundation and secure long-term growth through international partnerships. Intel is ready to play its part.
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