Enable cleaner, smarter tech for Europe’s future
1916
Czochralski pioneered chip production.
Today, rules could slow down the process(or).
What is the issue?
Jan Czochralski’s groundbreaking method for growing single crystals made modern semiconductors possible – powering the microchips at the heart of every computer, smartphone, and cloud system today.
While his discovery unlocked a new industrial age, today’s challenge for European innovators lies not in invention itself, but in scaling breakthrough technologies within an increasingly complex EU regulatory framework.
If Czochralski were leading a semiconductor company today, attempting to expand chip production or deploy digital infrastructure in Europe, he would have to navigate overlapping industrial, cybersecurity, and environmental rules.
That patchwork includes, for instance, the EU Chips Act, Cyber Resilience Act, NIS2 Directive, and sustainability requirements covering chemicals, batteries, sustainability reporting, and ecodesign. Each serves an important goal, but together they create duplication, friction, and higher compliance costs that deter investment and slow innovation.
For the companies building the semiconductor-powered devices, servers, and cloud infrastructure that underpin our digital economy, Europe’s success will require more than funding or targets. It demands coherent, innovation-friendly regulation.
To keep Europe competitive in the global, microchip-fuelled digital race, policymakers should focus on three priorities
1. Simplify cybersecurity to strengthen Europe’s digital infrastructure
2. Make sustainability an engine for growth
3. Turn the Chips Act into a blueprint for competitiveness
1. Simplify cybersecurity to strengthen Europe’s digital infrastructure
One smart security framework will make Europe’s digital backbone safer and stronger.
Duplicative obligations under the Cyber Resilience Act (CRA), NIS2, other EU-level legislation, and national regimes force companies to report the same incidents multiple times and meet a wide range of audit standards.
The way forward for bold and ambitious simplification
I. Adopt a ‘report once, comply many’ model
Create a single EU-wide incident-reporting platform and aligned severity thresholds across the Critical Entities Resilience Directive (CER), CRA, NIS2, European Electronic Communications Code (EECC), Digital Operational Resilience Act (DORA), General Data Protection Regulation (GDPR), AI Act, and the Payment Services Directive 2 (PSD2).
II. Ensure mutual recognition of security audits and standards
Allow one certification or audit to satisfy equivalent requirements under related EU laws, and those of trade partners. This strengthens Europe’s competitiveness by enabling companies to rely on globally recognised security certifications, minimising repetitive testing and associated expenses.
III. Automate and streamline compliance evidence
Enable digital re-use of audit results and security documentation so companies can meet multiple obligations effectively. Automation will free resources from administrative tasks, letting firms focus on real-world resilience.
2. Make sustainability an engine for growth
Digital innovation should make the right environmental choice the easiest one.
Digital tools and innovation should be at the core of EU environmental goals. However, a coherent regulatory framework covering a range of topics – including batteries, digital labelling, and waste – should be put in place for this to happen.
The way forward for bold and ambitious simplification
I. Align environmental and industrial policy
Address overlapping environmental and digital requirements to avoid duplicate reporting and conflicting metrics. For example, extended producer responsibility (EPR) systems are currently fragmented across Member States and waste streams, with differing timelines and separate declarations for each waste stream.
II. Provide realistic transition timelines
Give businesses sufficient lead time and legal certainty to adapt to new EU legal requirements. For example, while R&D cycles average 18 months or more, the EU Batteries Regulation leaves companies with less than a year for potentially fundamental product redesign – resulting in legal uncertainty and undue liability exposure.
III. Enhance consumer information through technology neutrality
Promote technology-neutral solutions to improve consumer access to information and ensure a harmonised framework for digital tools, such as product passports and digital labelling. Companies should be free to choose the technology that best fits their products – RFID tags, QR codes, NFC, etc – while gradually digitalising consumer information leaflets.
IV. Provide a coherent framework
Give companies clarity on upcoming timelines and obligations, also with a view to preventing overlap. For instance, when it comes to data-centre sustainability measures, the upcoming Cloud and AI Development Act (CAIDA) should not duplicate efforts already underway through the Energy Efficiency Directive (EED).
3. Turn the Chips Act into a blueprint for competitiveness
Europe’s chips strategy should attract investment and strengthen global innovation through open and resilient supply chains.
For global chip manufacturers and suppliers, Europe is an important hub for chip design, materials, equipment, and R&D in addition to manufacturing. Changes to the EU Chips Act can help make the region more attractive for semiconductor investments.
The way forward for bold and ambitious simplification
I. Build a strong and resilient semiconductor value chain
Strengthen the semiconductor ecosystem through partnerships between industry, SMEs, and start-ups. Align EU and national funding to accelerate strategic projects, mobilise private capital, and boost skills. Moreover, closer cooperation with like-minded global partners will increase resilience and innovation.
II. Streamline approval procedures for chip projects
Many semiconductor projects face delays due to regulatory, legal, and permitting red tape at Member State level. A predictable and efficient framework should fast-track strategic investments, reduce administrative burdens, and make approvals faster and more transparent across the EU.
III. Align the Chips Act with cybersecurity and trade rules
Ensure new semiconductor regulations complement the Cyber Resilience Act (CRA) and respect international trade commitments rather than adding new layers. Avoid divergent certification or sourcing requirements to keep Europe integrated in global semiconductor supply chains.
Simplifying and aligning these frameworks will help Europe transform scientific excellence into scalable industrial output – ensuring that Czochralski’s legacy continues to power the next generation of digital technology.