Semiconductors have become a strategic priority, with governments worldwide investing heavily in manufacturing to secure supply chains and strengthen technological leadership.
The European Union’s approach was to introduce the EU Chips Act in 2023, aiming to increase Europe’s share of global chip production to 20% by 2030. However, an April 2025 report from the European Court of Auditors projects that this target may be out of reach, with Europe likely to achieve only an estimated 11.7% market share by 2030. While this marks a notable rise from the 9% baseline in 2020, it still falls significantly short of the initial goal. Though the objective is clear, the path to it is rife with challenges.
In this article, Linesight explores how these high-tech industrial projects can overcome some of these hurdles to achieve faster build times, smarter delivery models, and develop stronger regional supply chains.
Europe currently lacks manufacturing capabilities at the most advanced process nodes required for applications such as artificial intelligence, data centres, and advanced manufacturing technologies.
Although European chipmakers are recognised for their expertise in specialty semiconductors, including sensors, power electronics, and chips for automotive and industrial applications, these products predominantly rely on more mature process technologies, generally characterised by larger node sizes. Consequently, Europe’s dependence on external suppliers for state-of-the-art semiconductors represents a significant strategic vulnerability, particularly in the context of evolving global trade dynamics and heightened geopolitical uncertainties.
The ‘Semicon Coalition', a collaborative initiative involving all 27 European Union member states, aims to coordinate policy efforts, investments, and strategic priorities to build a more resilient and competitive semiconductor ecosystem within the EU. A recent declaration by the Coalition calls for a “…a robust revision of the EU Chips Act, one that will drive the continued growth of a strong, innovative European semiconductor ecosystem.”
Key considerations for semiconductor megaprojects
As the demand for advanced semiconductor manufacturing grows, the complexity and magnitude of constructing these facilities evolves. Understanding the key factors driving this transformation is essential for stakeholders navigating the changing landscape of high-tech construction in Europe.
Building a state-of-the-art semiconductor fabrication facility has become a true megaproject, highly complex, capital-intensive, and demanding extreme precision. As components continue to shrink, meeting cleanroom, process, and tolerance standards requires advanced coordination and technological innovation. According to Deloitte, constructing a leading-edge fab today can cost between US$4–5 billion, purely for construction.
Semiconductor projects often operate under aggressive timelines, particularly for chip types supporting fast-growing sectors like artificial intelligence. Design, construction, and tool installation phases frequently overlap, creating highly dynamic and interdependent workflows. Managing concurrent activities at this scale requires agile decision-making, integrated project planning, and exceptional coordination across design, engineering, and delivery teams to maintain schedule certainty.
Beyond core technical demands, fab developments must also meet ambitious sustainability objectives and regulatory requirements. European standards for energy use, emissions, and utilities differ significantly from global benchmarks, often driving investment in advanced energy efficiency and circular economy solutions. Balancing production demands with environmental performance adds further layers of complexity to high-tech manufacturing construction in Europe.
Permitting and compliance remain critical challenges for semiconductor construction in Europe. Complex local regulations can extend timelines, increase costs, and heighten risk. While progress is being made by local authorities to streamline approval processes, the overall regulatory landscape remains intricate and requires proactive engagement, early coordination, and experienced project leadership to navigate evolving legislative frameworks efficiently.
Non-European chipmakers establishing facilities in the region often face a steep learning curve. Differences in construction practices, business culture, and communication norms can slow mobilisation and decision-making. Without established supplier networks, progress can be uneven. Early engagement with local partners and transparent cross-cultural collaboration are key to achieving delivery speed and efficiency in new markets.
Delivering semiconductor facilities at scale requires a large, highly skilled workforce, yet Europe faces a significant shortage of qualified professionals. Demand for engineers, project managers, and trades such as electricians and welders is outpacing supply. With labor markets already stretched, fab projects must compete with rapidly expanding sectors like renewable energy, data centers, and infrastructure development.
Even when labor is available, the specific expertise required for semiconductor projects is often limited. A lack of leadership and technical experience in complex, high-precision environments, such as cleanroom construction and process tool installation can affect performance. While automation and off-site manufacturing help, they cannot close the gap entirely, highlighting the need for training, upskilling, and knowledge transfer.
Europe’s semiconductor construction ecosystem is still maturing compared to markets like Taiwan or South Korea, where decades of consistent investment created deep, specialised networks. European projects often rely on suppliers from multiple countries, adding logistical complexity. Developing stronger regional supply chains and shared industry expertise will be essential to achieve long-term delivery speed and stability.
Overall, speed and cost of delivery will depend on how well fab developers manage complexity. Beyond technical and engineering solutions, such as off-site manufacturing, robotics, automation, and digital twins, there are also impactful project management and control practices that can unlock these technologies’ full potential and enable the exceptional coordination and oversight required for large-scale semiconductor construction.
Advanced digital project controls
Project Controls are a structured set of processes that ensure projects stay on track by managing schedule, cost, risk, and change. Digital dashboards that aggregate data and information to support decision-making, have become standard in large-scale projects. However, their effectiveness is often limited by the significant effort required to keep data current, complete, accurate, and consistently harmonised across diverse stakeholders.
Advanced solutions address these challenges through automated workflows built on integrated, collaborative tools within common data environments. This approach enhances process efficiency and ensures data quality by establishing a single source of truth. A prominent example is the expanded use of Building Information Models (BIM), which enable architects, designers, and engineers to collaborate in cloud-based environments. The same models can be used for scheduling (4D) and cost management (5D) tasks, allowing teams to simulate cost and schedule impacts of design options, perform rapid estimate updates, and graphically visualise planned versus actual progress.
The evolving role of procurement and supply chain management
Procurement and Supply Chain Management are becoming increasingly important disciplines in semiconductor construction. To effectively navigate current market constraints, project owners should consider shifting their delivery models from traditional linear contracting to more collaborative delivery frameworks, such as integrated and alliance-based approaches. These models enable early involvement of local contractors, modular manufacturers, and specialised suppliers by distributing risks and rewards across a broader ecosystem. This not only reduces dependency on individual partners but also makes semiconductor construction more appealing to a wider supplier base, helping to strengthen and diversify the industry’s supply chain.
Finally, the rise of off-site manufacturing and modularisation has transformed supply chains into hybrid construction manufacturing networks. As a larger share of work shifts to prefabrication facilities, supply chain specialists must be included from the design phase onward to coordinate aspects like vendor qualification, shipping splits and sequencing. In short, supply chain management in semiconductor construction is evolving from a transactional role to a strategic integrator.
Conclusion
To successfully deliver future semiconductor fab investments in Europe, project leaders must navigate a landscape defined by increasing complexity, scale, and market constraints including talent shortages and supply chain limitations. To do so, they should prioritise the use of advanced digital project controls and embrace the evolving strategic role of procurement and supply chain management. These disciplines enable teams to fully leverage technical and engineering innovations, maintain agility in dynamic environments, and drive project performance from planning through to execution.
Linesight delivers across high-tech manufacturing programmes worldwide. We have successfully managed the project controls and procurement strategy for a major semiconductor fabrication organisation for over 12 years, implementing advanced digital tools and collaborative supply chain frameworks that ensured on-time, cost-efficient delivery despite complex market constraints.
If you are planning a semiconductor facility in Europe, Linesight can help you deliver at speed and scale. Contact our team using the contact form above.
