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# Europe's Chip Industry Caught Between US and China Tensions
- URL: https://adjacent.media/signals/europes-chip-industry-caught-between-us-and-china-tensions/
- Published: 2026-07-02T16:09:40.000Z
- Updated: 2026-07-02T16:09:40.000Z
- Description: Europe’s semiconductor sector is losing technological autonomy. Geopolitical fractures are forcing companies to choose sides rather than maintain balanced supply chains.
- Author: Jonathan Greene
- Tags: #signal, theme-connected, semiconductor supply chain, geopolitical risk, industrial policy

Source: [The Next Web](https://thenextweb.com/news/eu-chip-sector-bleak-future-china-us-risks-report?ref=adjacent.media)

Europe's semiconductor sector is losing technological autonomy. Geopolitical fractures are forcing companies to choose sides rather than maintain balanced supply chains. A EUISS and Institut Montaigne report identifies the structural trap: stricter US export controls on advanced chips to China are pushing European manufacturers to either abandon high-end production or risk American sanctions. China counters by investing heavily in domestic alternatives and potentially restricting rare earth exports that European fabs depend on. Without independent capacity, Europe risks becoming dependent on others for the technologies that matter most.