Issue link: https://iconnect007.uberflip.com/i/1506834
44 SMT007 MAGAZINE I SEPTEMBER 2023 integrated industrial strategy for the elec- tronics industry. Otherwise, the semiconduc- tor fabrication spurred by the Chips Act will lead to chips being sent offshore for assembly, thereby lengthening and weakening European supply chains. Recommendations By any metric, Europe is highly dependent on electronics produced offshore for end-systems critical to Europe's security, vitality, and stra- tegic goals, including the dual transition. is dependency poses a serious risk to Europe's strategic autonomy given that a massive global supply chain disruption could deplete invento- ries for critically needed goods and bring man- ufacturing across most economic sectors to a standstill. Europe would not be able to meet existing demand for electronics and manufac- turing capacity and infrastructure are not built overnight. Industry has identified several initial recom- mendations to strengthen the EMS and PCB industries in Europe. ese options address the issues raised in the SWOT analysis and reflect the industry's view that both govern- ment funding support and policies that drive demand for EU-produced electronics are required to strengthen European electronics manufacturing. In addition to these immediate recommen- dations, the industry also outlines next steps to expand on the empirical research and pursuit of longer-term goals. 1. Declarations of Strategic Importance e industry is seeking from the EU and Member States clear, affirmative declarations that electronics manufacturing is strategi- cally important for Europe and that bolster- ing Europe's PCB and EMS sectors is essential to European strategic autonomy. is can take the following shape: • Highlighted as strategic dependencies in the EU's Industrial strategy and upcoming industrial communications due to the critical nature of the sectors for all indus- tries incorporating electronics • Highlighted for capacity building as part of the EU's Digital Decade under the secure and sustainable digital infrastruc- ture pillar, and the EU's long-term competitiveness focus 2. Strategic Alignment with Chips Initiatives As part of the European Chips Act imple- mentation, the industry stakeholders encour- age the European Commission to leverage the Act to help support growth and innovation across the electronics industry. is could be achieved by helping the PCB and EMS indus- tries increase the capabilities and capacities to place chips on European-made boards. e upcoming Chips Joint Undertaking offers an immediate opportunity to include this objec- tive in scope. 3. Supporting Factory Modernization e industry recommends public sector financial support to help PCB and EMS com- panies purchase advanced machinery and equipment to increase production capabilities, capacities, efficiency, and innovation and to support the EU's digital and green transitions. • For PCB companies, this means enabling and supporting up-front investment in equipment needed to meet technological shis. e investment in equipment will respond to the current lack of sufficient production capacity and capabilities in a continuously growing market and stimu- late market demand. • For EMS companies, significant invest- ments are required to keep pace with developments in manufacturing technol- ogies. Government loan programmes will support the acquisition of equipment in response increasing demand, but support