An essential component of any digital product, semiconductors are vital to the defence and aerospace industries, despite the latter accounting for only about 1% of the global chip market. 

The semiconductors they need must be resistant, reliable and able to store data and information in complete safety and security. While interruptions of the supply chain in general represent an economic and potentially a social challenge, in these strategic sectors shortages also become a security problem.

Europe depends on a small number of foreign suppliers and this has sensitive implications. The United States, China and South Korea are investing large sums. With the Chips Act, the European Commission intends to double production in Europe, bringing it to a global share of 20% by 2030, with a total investment of about EUR 43 billion. 

However, the EESC is asking the Commission to clarify the sources of this funding, as some of it would seem to come from a redistribution of sums already allocated in the budget to other priority areas such as space, AI and cybersecurity, which must not be jeopardised. The appropriations of the European Defence Fund must not be reduced either, given the already limited resources available. In a context of growing geopolitical tensions, ensuring that the defence and aerospace sectors have adequate financial support is critical for the Chips Act. 

We also suggest that the Chips Act should focus on and promote innovation not only in small semiconductors, but also in the larger ones which are still very much in use in the defence and aerospace industries.

The development of certification procedures is also fundamental for these two sectors. For example, there is a need to support the development of joint military-civil standards as part of the European strategy for standardisation.

An issue to be addressed without delay is legal certainty in the field of State aid, indicating at EU level the criteria for authorising any support measures and streamlining administrative procedures at national level.

There is also a need to strengthen cooperation with allied countries such as the United States through the EU-US Trade and Technology Council. In short, the global defence and aerospace semiconductor ecosystem is complex and highly interdependent. Only by leveraging on the strengths and developing coordinated strategies is it possible to avoid duplication and increase the efficiency of the entire system.

Maurizio Mensi, EESC member