Nationalism in chipmaking a concern, say European CEOs

The CEOs of Europe’s top three chip manufacturers expressed concerns about the rising nationalist policies from the US, China, and Europe. They argue these policies are pushing each region to secure its own semiconductor supply, causing significant strain on the global chip industry.

Infineon, STMicroelectronics, and NXP—major suppliers of chips for electric vehicles and industrial technology—highlighted the challenges these policies are creating. Speaking at an electronics conference in Munich, Infineon’s CEO Jochen Hanebeck warned that further fragmentation is likely, particularly through tariffs, which could seriously disrupt global supply chains.

STMicroelectronics’ Jean-Marc Chery pointed out that duplicating supply chains across continents has led to costly investments in both materials and engineering. The pressure to maintain regional independence in chip production is placing an unsustainable burden on resources, he noted, particularly as China’s demand for chips in electric vehicles remains strong.

Kurt Sievers, CEO of NXP Semiconductors, argued that no country could feasibly achieve self-sufficiency in the chip industry. Attempting to do so, he said, would lead to prohibitive costs, making electronic devices unaffordable for consumers. He anticipates governments will eventually realise that global cooperation is essential for sustaining the semiconductor industry.