Weekly Global Logistics & Supply Chain Review | June 5, 2026

Europe's proposed "Chips Act 2.0" shifts the EU semiconductor strategy away from simply funding manufacturing capacity and toward creating stronger domestic demand for European-designed and European-made chips. The plan aims to connect chipmakers, startups, industrial customers, and governments through "Demand Accelerators," public procurement programs, and strategic partnerships that encourage adoption of local semiconductor technologies in sectors like AI, defense, cloud infrastructure, and smart manufacturing. The proposal also addresses Europe's long-standing "lab-to-fab" problem by supporting chip design, advanced packaging, and scale-ups, while acknowledging that Europe still lacks sufficient late-stage funding and advanced manufacturing capabilities compared to the U.S. and Asia. Industry leaders argue that the new demand-driven approach could help build a more self-sustaining semiconductor ecosystem, though major funding decisions are still tied to future EU budget negotiations.

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