Semiconductor Sovereignty : Navigating the Chip Crisis through the Lens of the European Chips Act – A Comparative Analysis of Germany and the Netherlands

This study seeks to discuss how the policy frameworks of Germany and the Netherlands drive their objectives within the European Chips Act. Threats to the vulnerable semiconductor supply chain are touching new heights because of rising tensions worldwide. This research will examine the strategies and motivations behind Germany and the Netherlands’ engagement in the ECA. Those theories are framed through the lens of realism, industrial policy, and liberalism The findings are that Germany will mainly base itself on an industrial policy focused on resilience, sovereignty, and national security. The Netherlands had a mixed policy beforehand, but since the announcement of the ECA, it shifted to a more industrial policy approach. In both cases, the study concluded that Germany most suits the defensive realism approach in contrast with the Netherlands, where there is a mix of liberalism and industrial policy motivations. The study aims to help one understand the making of policies in the semiconductor industry and the dynamics that go into the making of such an ECA.