Europe’s Electronics
Manufacturing at a
Turning Point

White Paper: The Way Back? What Brussels Is Doing for European EMS Electronics Manufacturing

Analysing the Impact of Chips Act 2.0, EDIP, and Public Procurement Initiatives on European Electronics Assembly and PCB Ecosystems

This white paper by EMS Strategy Group (Dirk Kaussen, Rev. 1.0, September 4, 2026) contextualizes the EU's latest industrial policy instruments, identifying their specific entry points and strategic limitations for printed circuit board (PCB) and electronic manufacturing services (EMS) providers.

Publisher: EMS Strategy Group

1. An Industry Under Pressure

• Extreme dependency on Far East suppliers poses geopolitical risks, hardware vulnerability threats, and supply chain disruptions.
• European PCB manufacturing accounts for a meager 2% of worldwide production, while the EU share of global EMS market volume remains at just 10%.
• ZVEI and industry leaders urge a reliable European de-risking framework to protect critical infrastructure and technological sovereignty.

2. Chips Act 2.0: Broadening the Microelectronics Scope

• Expanded Focus: The Commission’s Chips Act 2.0 proposal extends beyond semiconductor fabrication to include advanced packaging, PCB manufacturing, and electronic assembly.
• First-of-a-Kind Framework: Brings manufacturing-oriented chip design, equipment, and PCB integration into the core EU industrial strategy.
• Legislative Status: Currently undergoing the ordinary legislative process; funding eligibility depends on meeting specific project criteria.

3. EDIP & Public Procurement: Short-Term Funding and Demand Levers

• EDIP Defense Funding: Provides €1.5 billion total budget; the "Key Electronic Components" call specifically funds defense PCBs, IC substrates, avionics, and power electronics.
• Investment Leverage: Offers 35% to 50% co-financing (up to €20M per project), expected to trigger over €350 million in new European defense electronics capacity.
• Public Procurement Act: Proposed "Made in Europe" criteria aim to leverage public demand to support long-term domestic manufacturing capacity.

4. Strategic Outlook for EMS and OEMs

• Policy shifts elevate PCBs and electronic assemblies from mere cost items to vital pillars of European industrial resilience.
• Capacity creation through funding must be paired with robust, long-term European demand to succeed.
• Execution, concrete program rules, and maintaining economic competitiveness remain key for a sustainable European reshoring strategy.

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