In the latest installment of Five Questions With…, Alison James, Senior Director for European Government Relations, discusses how geopolitics, defence demand, data centre growth, and EU policy initiatives are reshaping Europe’s electronics industry and creating new opportunities to strengthen regional manufacturing across the value chain.

What is the most important shift happening in the European electronics industry right now, and why does it matter?

From a government relations perspective, the most significant shift comes as a result of geopolitical developments. As each region seeks greater self-sufficiency in strategic areas, the significance of regional electronics manufacturing grows. In Europe we have seen this particularly in the area of defence. With the invasion of Ukraine and the imperative for the European Union to become more autonomous in defence, the electronics industry is seeing a surge in demand for this sector. It matters because, while no one would wish for an escalation of conflict, it represents an important market for regional electronics manufacturing, for our European PCB as well as our EMS industries. 

What’s one policy or market trend in Europe that the electronics industry is not talking about enough? 

The industry is perhaps talking about it, but it is important for the industry to be aware that data centres are a strong policy focus in the European Union. With the adoption of the proposed Cloud and AI Development Act in June, the EU plans to triple data centre capacity in the coming years. As the Global Electronics Association, we have highlighted that electronics capacities and capabilities are critical. There has been significant focus on the need to develop (and access) AI chips. IC-substrate as well as PCB assembly capabilities and capacities for these super advanced packages with high form factors also need to be developed by substrate, PCB and PCBA electronics manufacturing industries. The question will be where all the capabilities and capacities will be developed and to what extent the EU can build a greater measure of technological sovereignty in these areas.