EU firms capture less than 10% of the bloc's datacenter chips, server assembly, and cloud infrastructure markets.
Europe has fallen behind other regions in much of the electronics supply chain.
Server makers are American, with China's Lenovo a notable exception.
GEA argues that supporting individual parts of the supply chain in isolation will not create a competitive European industry.
The GEA says that the European objective should be to progressively anchor a greater share of the end-to-end value chain within Europe.
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Summarized version
Taiwan dominates contract chip manufacturing and produces most of the world's leading-edge processors, many of them designed by American companies. It points to the Chips Act 2.0 and CADA as steps in the right direction, but says other industrial policy instruments will need to match them.
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The article, shortened and in plain language
EU firms capture less than 10% of the bloc's datacenter chips, server assembly, and cloud infrastructure markets.
Its report, " From Chips to Systems: Building an End-to-End EU Strategy for Data Centre, Cloud Infrastructure and AI," says that Europe's Cloud and AI Development Act (CADA) aims to at least triple the bloc's datacenter capacity within five to seven years.
The association argues that Europe needs policies to develop its own industrial ecosystem and capture more of the "unprecedented demand for servers, electronic systems and semiconductor components" CADA is expected to stimulate.
Europe has fallen behind other regions in much of the electronics supply chain. Taiwan dominates contract chip manufacturing and produces most of the world's leading-edge processors, many of them designed by American companies, while South Korean and US suppliers dominate the memory market.
Server makers are American, with China's Lenovo a notable exception. US companies also dominate networking and storage.
Its case rests partly on the claim that servers, driven by AI processing requirements, have become the primary growth driver of the entire electronics industry since 2024, overtaking other segments.
GEA argues that supporting individual parts of the supply chain in isolation will not create a competitive European industry.
The report acknowledges that Europe cannot realistically build this supply chain using EU-headquartered companies alone.
The GEA says that the European objective should be to progressively anchor a greater share of the end-to-end value chain within Europe.
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