As global tensions rise and digital infrastructure becomes more deeply embedded in daily life, the conversation around national security has expanded to include semiconductor sovereignty. Both the United States and the European Union have identified chip manufacturing and supply chain resilience as strategic priorities. Erik Hosler, a semiconductor policy analyst and innovation advocate, recognizes the urgency, noting how secure domestic chipmaking is no longer just an economic concern but a cornerstone of national defense, technological independence and economic resilience.
This shift has led to major infrastructure investments on both sides of the Atlantic, where policymakers, manufacturers and research institutions are aligning to rebuild regional capabilities in advanced chip production. As semiconductor sovereignty becomes a geopolitical imperative, both regions are moving quickly to reinforce local supply chains and reduce dependency on foreign fabs.
The Strategic Value of Semiconductor Sovereignty
Modern economies rely on semiconductors for nearly every critical application, from defense systems and energy infrastructure to healthcare and transportation. This dependence has made chips a national security asset. Any disruption in the semiconductor supply chain, whether from natural disasters, economic sanctions, or military conflict, can paralyze essential industries.
The COVID-19 pandemic and ongoing tensions between the U.S. and China further exposed vulnerabilities in global chip supply chains. Shortages of automotive and industrial chips highlighted how even low-margin, older-generation chips could halt production in multiple sectors.
For both the U.S. and EU, reclaiming sovereignty means regaining the ability to produce advanced semiconductors domestically, controlling key nodes in the value chain and securing access to technologies critical for national competitiveness and security.
U.S. Infrastructure Investments and Policy Shifts
In the United States, the CHIPS and Science Act has set the tone for a new industrial strategy centered on semiconductor leadership. With more than $52 billion earmarked to support domestic chip production, R&D and workforce development, the act seeks to restore America’s manufacturing edge and reduce reliance on East Asian supply chains.
Federal funding has been complemented by state-level investments, with regions like Arizona, Texas and New York emerging as major semiconductor hubs. Companies including Intel, TSMC and Micron have announced multibillion-dollar fabs supported by public-private partnerships designed to accelerate construction and scale.
Beyond fabrication, the U.S. is also investing in packaging, testing and equipment manufacturing. These upstream and downstream capabilities are essential to ensuring a full-stack ecosystem that is resilient and locally rooted.
EU Strategies for Technological Autonomy
The European Union has launched its response with the EU Chips Act, aiming to mobilize more than €43 billion in public and private investment by 2030. The initiative seeks to double Europe’s share of global semiconductor production from less than 10 percent to 20 percent within the decade.
Key goals include boosting R&D in advanced nodes, supporting pilot lines for next-generation technologies and ensuring that European firms have access to secure chip supply for critical infrastructure, defense and communications.
Countries like Germany, France and the Netherlands are leading the charge, hosting centers of excellence in equipment manufacturing and lithography. ASML, based in the Netherlands, is already a global leader in extreme ultraviolet lithography, a foundational technology for advanced chips.
To further reinforce sovereignty, the EU is expanding educational programs and cross-border industrial alliances to ensure talent development and supply chain integration across member states.
Aligning Industrial Policy with Innovation
Both the U.S. and EU recognize that rebuilding semiconductor infrastructure is not just a matter of funding; it’s a matter of coordination, innovation and long-term planning. Public investment must be paired with private sector collaboration and an innovation ecosystem that includes universities, startups and global tech leaders.
In both regions, incentives are being structured to not only build fabs but also foster upstream innovation in materials, process technologies and packaging techniques. These elements are essential to staying competitive as the industry shifts toward 3D integration, chiplets and hybrid quantum architectures.
Erik Hosler observes, “The integration of emerging materials and advanced processes into CMOS technology is critical for developing the next generation of electronics.” That integration is central to both national security and sovereignty efforts, as it enables chips that are not only secure and reliable but also at the technological frontier.
By incentivizing breakthroughs in CMOS-compatible quantum systems and AI-optimized architectures, policymakers can align industrial policy with cutting-edge innovation that serves both commercial and strategic needs.
Supply Chain Localization and Risk Diversification
Achieving semiconductor sovereignty is not only about producing chips; it’s about controlling the entire value chain. This includes materials, specialty gases, wafers, photomasks and tools. The U.S. and EU are both investing in localizing the supply of these inputs to reduce bottlenecks and geopolitical exposure.
Efforts are underway to diversify rare earth sourcing, increase domestic production of high-purity silicon and develop regional capacity in critical chemicals. Equipment manufacturers are being encouraged to regionalize service and parts infrastructure to support localized fabs without relying on long-distance supply routes.
Collaborations with trusted allies, such as between the U.S., Japan, South Korea and EU member states, are also playing a role in risk diversification. These alliances are focused on building redundancy, harmonizing export controls and sharing R&D efforts in critical semiconductor domains.
Semiconductor Sovereignty and Defense Applications
The national security implications of semiconductor sovereignty are especially acute in the defense sector. Advanced chips are used in everything from radar and satellite systems to secure communications and autonomous weapons platforms. Ensuring that these technologies are domestically sourced and free from foreign tampering is a strategic priority.
Both the U.S. Department of Defense and the European Defence Agency are investing in “trusted foundry” programs that guarantee chip integrity from fabrication through deployment. These efforts involve working with vetted suppliers, secure packaging protocols and specialized testing to ensure mission-critical reliability.
As defense platforms evolve to include AI, quantum and edge computing, the demand for secure, high-performance chips will only intensify. Semiconductor sovereignty enables faster innovation cycles, tighter supply control and operational assurance in national defense.
Challenges to Achieving Full Sovereignty
Despite strong political will and historic investments, achieving true semiconductor sovereignty is complex. Building advanced fabs takes years, supply chains remain globalized, and workforce shortages pose a bottleneck to scaling. Talent development, especially in areas like photonics, cryo-CMOS and materials science, is becoming as important as capital expenditure.
Environmental concerns, permitting processes and geopolitical competition further complicate execution. Still, the direction is clear: sovereign semiconductor infrastructure is becoming a strategic pillar for both the U.S. and EU, one that will shape economic resilience and technological leadership for decades to come.
A Strategic Rebuilding of Technological Foundations
The drive for semiconductor sovereignty represents a fundamental rethinking of national infrastructure in the digital age. It ties security to silicon, innovation to independence and technology to territory. For the U.S. and EU, this is not just an industrial policy; it is a strategic rebuilding of the foundation for economic and defense competitiveness.
By investing in chipmaking at home and aligning supply chains with trusted partners, both regions are charting a path toward greater control, security and innovation. Semiconductor sovereignty is no longer optional. It is the blueprint for national strength in the age of quantum computing, AI and global digital interdependence.
