White Paper: The Sell-off of the Future
How European short-term thinking and the focus on quick financial returns are financing China's long-term high-tech sovereignty – using copper foil as an example.
This White Paper by EMS Strategy Group (Dirk Kaussen, August 25, 2026) analyzes the asymmetric clash of two economic cultures through the lens of the failed takeover attempt of Circuit Foil Luxembourg. It highlights how selling critical European technologies risks eroding Europe's industrial foundation and why investment screening alone cannot cure underlying structural short-termism.
Publisher: EMS Strategy Group
1. Asymmetry of Thinking & The Circuit Foil Case
- A failed sale illustrates the dilemma: Short-term liquidity goals in the West meet China's decades-long strategic acquisition policy.
- Copper foil as a critical component for high-frequency technology, telecommunications, and data centers.
- Irreversible loss of valuable, long-accumulated process knowledge during foreign takeovers.
2. Two Perspectives on Corporate Valuation
- Succession pressure in SMEs forces many owners toward external corporate sales.
- Strategic buyers leverage acquisitions as a shortcut to achieve global market leadership.
- Europe exchanges long-term technological substance for one-off liquidity gains.
3. Implications for Electronics Manufacturing
- Dramatic decline: Europe's share of global PCB production fell from 20% (2000) to around 3% (2022).
- Dominance in Asia: Over 85% of global PCB manufacturing is concentrated in Asia.
- Incomplete semiconductor strategy: The European Chips Act remains vulnerable if foundational precursor materials like PCBs and copper foils are lacking in Europe.
4. Conclusion & Action Required
- Foreign Investment Screening (FDI) acts reactively and cannot address the root causes of skill loss.
- Need for strategic red lines regarding critical components and supply chain resilience.
- Building European capital structures to bridge succession gaps in the SME sector.
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