Q2 2026 Market Insights 1 - Flipbook - Page 7
Europe Pushes for Greater Semiconductor
Independence
Europe accelerated efforts to strengthen
semiconductor self-sufficiency during April
and May 2026 as policymakers prepared
revisions to the EU Chips Act aimed at increasing
direct investment into new fabs and advanced
semiconductor technologies. According to
Bloomberg, the proposed “Chips Act II” would
allow the European Commission to invest directly
in manufacturing projects following delays
and cancellations tied to earlier semiconductor
expansion plans. European governments also
continued prioritising domestic semiconductor
supply resilience, advanced packaging, automotive
semiconductors, and industrial chip production as
dependence on Asian manufacturing remains a
key strategic concern.
Advanced Packaging Expansion Accelerates
Worldwide
Global semiconductor packaging and testing
investment accelerated significantly throughout
Q2 2026 as AI-related demand continued pushing
advanced packaging capacity to its limits. According
to TrendForce, ASE launched its largest-ever
global fab expansion programme, while Samsung
Electronics and Amkor increased packaging and
testing investment in Vietnam to support AI,
automotive, and high-performance computing
demand. Industry analysts also noted that advanced
packaging, including CoWoS and HBM integration,
has become one of the most critical bottlenecks
across the global AI semiconductor supply chain.
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