A new ZVEI study shows: semiconductor demand will double by 2040, equivalent to 65 new fabs. New capacity is being built in Asia. What this means for your parts supply — and what you can do today.
When supply chains break down, it rarely happens all at once. It starts small — a component goes missing, a line goes down, an emergency shipment gets booked. And then comes the question nobody wants to ask: How did we let this happen?
The uncomfortable answer: the warning signs were there all along.
How Many Chip Fabs Does Europe Need by 2040?
Europe's semiconductor industry is growing — just not fast enough to keep up with demand. According to a recent study by industry association ZVEI, developed by PwC Strategy with roughly 20 companies and 50 industry experts, Europe's current chip consumption equals the output of approximately 32 modern reference fabs. By 2040, that demand doubles — to 65 fabs.
New capacity is being built predominantly in Asia. Even European heavyweights like Infineon are not planning additional fabs of their own — the focus is on maximizing existing capacity and working with external partners. AMD is investing over ten billion dollars — in Taiwan. Aixtron is building new manufacturing capacity — in Malaysia.
This isn't a streak of bad luck. It's how the system works.
What Does the ZVEI Study Mean for Automotive and Industrial Manufacturers?
For manufacturers in automotive, mechanical engineering, and industrial electronics, structural dependence on Asian suppliers continues to grow — specifically in the component categories most critical to your core processes: microcontrollers, power semiconductors, sensors.
Add the geopolitical layer: the effective blockade of the Strait of Hormuz following the Iran conflict demonstrated just how vulnerable supply chains are to regional disruptions. A conflict over Taiwan — where 80 to 90 percent of all high-end chips are produced — would be orders of magnitude more severe.
What Did the Nexperia Case Teach Us?
A single ownership dispute between China and Europe was enough to push the automotive industry into parts shortages for months. The fallout is still being felt today — and it wasn't an outlier. It was a preview of what's possible when geopolitical tensions escalate further.
Structured Inventory Management Instead of Reactive Emergency Sourcing
Structured inventory management creates buffers that don't blindly tie up capital — they mitigate specific risks. btv technologies' TAK model combines transparency, agility, and control over your component inventory, with full traceability and a single point of contact across the entire process.
Is Long-Term Storage a Cost Factor or a Strategic Investment?
Long-term storage isn't a cost — it's a buffer that makes supply security plannable for years ahead. btv goes beyond IEC 62435 compliance, with full documentation, continuous quality monitoring, and flexible on-demand retrieval. Companies that build critical stock today are buying themselves response time tomorrow.
Supply security isn't an insurance policy you sign once. It's a capability you build — and the time to start is now.
