EU Chip Target Challenged: Auditors Project 11.7% Global Share by 2030

Brussels, Belgium – The European Union's ambitious goal to secure 20% of the global microchip market by 2030 is facing a significant reality check. A recent report by the European Court of Auditors (ECA) indicates that the bloc is "very unlikely" to achieve this target, forecasting Europe's share to reach only 11.7% by the end of the decade. This assessment comes amidst calls from experts for Europe to accelerate its indigenous capabilities in advanced artificial intelligence (AI) and semiconductor manufacturing.

The European Commission launched the European Chips Act in 2022, which came into force in September 2023, aiming to mobilize over €43 billion in public and private investments. This initiative, alongside the "AI Continent Action Plan" unveiled in April 2025 and the "InvestAI" facility targeting €200 billion, underscores the EU's strategic pivot towards bolstering its technological sovereignty. These efforts seek to reduce reliance on foreign powers in critical digital infrastructure and foster a homegrown AI ecosystem, including "AI factories" and "gigafactories."

However, the ECA report, released in April 2025, highlights that the Chips Act was "prepared in urgency" and suffers from fragmented funding and slow implementation. The auditors noted that the EU’s financial muscle is too dispersed across various schemes, hindering effective investment. This raises concerns about Europe's ability to compete in the intense global race for technological supremacy.

The urgency for self-reliance is echoed by figures like Dr Singularity, who stated in a recent tweet, > "The EU needs its own AGI/ASI and AI chip manufacturing Manhattan Projects. Europeans can’t afford to rely on the US or China to share it once this technology is developed. If either decides to hold it back, even for a year it could result in a significant and possibly permanent disadvantage." Dr Singularity further emphasized the need for "at least 10s of billions scale projects PPP adjusted" to achieve independence.

Globally, the United States has committed over $52.7 billion through its CHIPS and Science Act, while China is estimated to invest $150 billion in its semiconductor industry by 2030. India is also pursuing its "Semiconductor Sovereignty and AI Superiority" pathway with the ₹76,000 crore Semicon India Programme, despite facing challenges in compute infrastructure. Dr Singularity suggested that India "may also be capable of achieving it independently" and advised other regions like Latin America, Southeast Asia, and Africa to "band together, share resources and launch their own AGI/ASI/chip initiatives." The dual-use nature of AI, applicable to both civilian and military sectors, further amplifies the geopolitical stakes, making indigenous development a matter of national security and economic resilience.