Strategic Brief: Europe’s Industrial Electronics Base – EMS Strategy Group
Building Critical Manufacturing Capacity Instead of Catching Up with China
China has built an industrial structure for electronics, semiconductors, and printed circuit boards over several decades whose breadth Europe cannot reproduce in the short term. However, this often leads to the flawed conclusion that Europe would need 15 to 20 years to regain sufficient manufacturing capacity. Europe does not need to replicate China's total volume; the objective is to build critical capabilities to remain operational in times of crisis. This Strategic Brief highlights major ongoing European projects and outlines how targeted resilience is established through China+1 strategies.
Author: Dirk Kaussen | Publisher: EMS Strategy Group
Key Takeaways and Strategic Analysis
- 1. China as the Wrong Target: The objective should not be replicating China's entire manufacturing volume, but rather selectively building critical capacities to ensure operational capability during crises.
- 2. Not Starting from Zero in Semiconductors: Leveraging world-class expertise, major projects such as imec's NanoIC Chips Act pilot line, ESMC's fab in Dresden, Infineon's Smart Power Fab, Silicon Box in Novara, and Intel in Ireland are actively expanding European production.
- 3. Momentum in Printed Circuit Boards: Despite a reduced footprint, players like AT&S (Leoben IC Substrate Center and Fehring site) and Aspocomp (Oulu facility expansion) demonstrate active reinvestment in strategically vital PCB capacity.
- 4. EMS Manufacturing Expansion: Leading providers such as Kitron (Arendal & Horsens), NOTE (Lund), and Scanfil (Mysłowice expansion) are adding manufacturing footprint to offer regulation-compliant options for defense, aerospace, and industrial sectors.
- 5. Resilience Through China+1: True supply chain resilience means avoiding single-source dependencies, not isolation. Adding a secondary European production hub strengthens negotiating power and secures business continuity.
- 6. Action Today Drives Future Security: Time passes regardless of investment. Strategic decisions made today will generate tangible European manufacturing alternatives within just a few years.
What EMS Strategy Group Provides
- Strategic evaluation of European nearshoring and manufacturing relocation opportunities
- Implementation of resilient China+1 strategies to de-risk global electronics supply chains
- Selection and auditing of qualified European EMS partners for highly regulated and critical applications
- Total Cost of Ownership (TCO) frameworks and risk assessments to ensure long-term manufacturing viability
Direct access without registration.
Read the complete Strategic Brief directly in your browser or download the PDF file.
Online Preview
You can read the full document directly below.