The EU is at a turning point in its chip strategy, shifting weight toward encouraging member governments to prioritize buying domestic startups' chips to grow internal demand, foreign media reported on the 21st.

EU chip policy had focused on expanding capacity—the supply side. But concern grew that even large subsidies are hard to recoup without steady demand to back them.

The pivot to demand aims to enlarge the market by favoring regional firms and startups in public and private procurement—also an attempt to raise Europe's self-reliance in a chip supply chain led by the U.S., China and Taiwan.

Yet 'buy domestic' could spark trade friction and fair-competition disputes. Some warn protectionist steps may reduce efficiency in an industry built on tight global division of labor.

This paper reports the strategic competition over chips neutrally. As a field where Korea and Taiwan are strong, Europe's policy shift could affect East Asian supply chains too.