Global value chains and cross-border investments

In light of today's increasingly challenging geopolitical context and rapid technological developments, it is necessary to take a proactive stance in safeguarding our EU economy. This entails preserving Europe’s strategic interests and keeping the EU market open to investments. 

The 2023 Communication on European Economic Security Strategy outlines key initiatives to boost the EU's economic security, focusing on promoting the EU's economic base and competitiveness, protecting against risks, and fostering partnership with like-minded countries.

Global value chain has favoured the circulation of technological advancements but at the same time they have created dependencies on raw materials, and on intermediate and finished goods produced elsewhere in the world. An excessive dependence on other nations could compromise the EU’s economic security. For example, the recent global chips shortage has disrupted supply chains, resulting in product shortages ranging from cars to medical devices. Chips – also known as semiconductors – are the building block of all electronic product and play a central role in our economies. A better understanding of the risks of depending on non-EU products and technologies is thus crucial. Against this background, the European Chips Act Regulation was proposed as part of a broader package of measures for strengthening the EU’s semiconductor ecosystem. 

The JRC analyses the semiconductors value chain and the role of the EU companies in this strategic value chain. The activity feeds the monitoring of the semiconductors ecosystem foreseen by Pillar 3 of the Chip’s Act. Specifically, the analyses aim to set up an early warning system to identifying and measure a set of signals that can anticipate future distress. Since being able to react quickly when a shock occurs is not enough, the project maps the key actors that belong to the semiconductors value chain.