Italy’s De-Risking Efforts in the Semiconductor Industry, the European Chips Act and Sino-American Geo-Economic Competition

As a strategic narrative, de-risking encapsulates aspiration to diversify supply chains and enhance domestic economic resilience. Like other European countries, Italy has also made efforts to “de-risk” its semiconductor industry. It has crafted targeted industrial policies addressing real vulnerabilities despite limited fiscal capacity, following a clear-eyed approach to its position in global semiconductor supply chains, with strategic investments in mature chips and advanced packaging that mitigate emerging dependencies on Chinese manufacturing. However, challenges persist: the European Chips Act’s ambitious target to double the EU’s global market share appears unrealistic, and the unpredictable trajectory of Sino-American competition threatens to undermine European self-reliance efforts in this critical sector.

Revised version of a paper presented at the IAI Transatlantic Symposium 2024–25, held in Rome on 9 May 2025.