The European Union's aspirations to become a global powerhouse in semiconductor production are facing significant headwinds. Recent developments have cast doubt on the region's ability to meet its ambitious goal of doubling its share in the global chip market to 20% by 2030. Industry experts, including Frank Bösenberg, head of the Silicon Saxony trade association, now view this target as "almost unattainable." The setback comes in the wake of Intel's decision to halt construction of its chip factory in Magdeburg, Germany, despite substantial promised subsidies.

This development underscores a broader trend of major tech investments bypassing Europe, raising concerns about the continent's competitiveness in high-tech sectors. The absence of cutting-edge semiconductor fabrication facilities on European soil means continued dependence on overseas suppliers for advanced chips crucial for AI and autonomous driving technologies.

The challenges extend beyond Intel, with other U.S. firms like Wolfspeed reconsidering their investment plans in Europe. These setbacks highlight structural issues in the European business environment, including high levels of regulation and taxation, which may be deterring potential investors.

As Asia and the United States forge ahead in semiconductor technology, Europe faces the risk of falling behind in yet another critical tech domain. This situation calls for a reassessment of Europe's industrial policies and investment strategies to maintain its relevance in the global high-tech landscape.

Generally speaking, how bad must things be for the European Union as a business location if even billions in subsidies can no longer convince foreign companies to invest in the old continent? We are on the way to becoming an industrial museum that can only be kept half alive by subsidies and state interventionism. We can see how this works by looking at the example of the green raid, which politicians have labeled the Green New Deal: a panic narrative is created that helps squeeze money out of the taxpayer, an incentive structure is created by a belt of media and subsidy companies that defend this narrative and, ultimately, pseudo-growth that provides the state with further revenue. It's an economic death spiral!