Rehearsing the EU’s Response to Semiconductor Supply Disruptions

The CHIPDIPLO consortium and the European Commission hosted a simulation exercise in Brussels in order to improve Europe’s preparedness to respond to a semiconductor supply chain crisis under the EU Chips Act.

Prepared over several months, the exercise brought together representatives from all 27 EU Member States, sitting both in the European Semiconductor Board and in the Council Working Party on Competitiveness and Growth (Industry).

For this simulation, a fiction but plausible disruption scenario was developed, affecting major semiconductor manufacturing hubs. Participants examined how a chip shortage could impact Europe’s industrial ecosystem, with particular focus on critical sectors such as energy, transport, health, digital infrastructure, space, security, and defence, as defined in the EU Chips Act.

The exercise provided an opportunity for stakeholders to test procedures, strengthen coordination, and explore options to mitigate the impact of a crisis, including mechanisms outlined in the EU Chips Act crisis toolbox.

The CHIPDIPLO project

The Chips Diplomacy Support Initiative (CHIPDIPLO) is an 18-month project led by Institut Montaigne with the Central European Institute of Asian Studies (CEIAS, Bratislava), the Centre for Security, Diplomacy and Strategy (CSDS, Brussels) and the EU Institute for Security Studies (EUISS, Paris and Brussels), and co-funded by the European Union. 

This project aims to help structure European foreign policy in the semiconductor sector, and contributes to the broader strategic objective of constructing a European economic foreign policy. It focuses on strengthening risk management for this strategic industry, promoting a more coordinated approach among the 27 EU Member States, and expanding networks of expertise with key international partners.