Europe’s Tech Skills Shortage Hindering Progress

A lack of focus on talent across Europe is significantly holding back the region, according to a new report and the president of SEMI Europe. The study by European agency DigitalEurope paints a concerning picture of Europe’s performance in critical technology sectors, while SEMI Europe highlights the skills gap in semiconductors.

“There aren’t enough people and the industry has an image issue, the sector does not benefit from full diversity, skills requirements are missing,” said Laith Altimime, president of SEMI Europe. He emphasized the need to address the workforce shortage, stating, “Currently we have a 250,000 workforce in Europe and to reach the EU target of 20% market share by 2030 we need to double that.”

Altimime points to the importance of adapting to the fourth era of technology, highlighting the significance of AI, 5G, and IoT from 2018 to 2025. He stressed the necessity of technologies like quantum and neuromorphic computing for the upcoming Industry 5.0, stating, “Data is to this century what oil was to the last, with autonomous, cloud edge computing.”

The study from DigitalEurope, titled ‘The EU’s critical gap: Rethinking economic security to put Europe back on the map’, analyzes the EU’s standing across eight critical technology areas outlined in the EU’s Economic Security Strategy. It identifies a talent shortage in key areas like AI engineering, quantum computing, and additive manufacturing, which hinders Europe's capacity to compete and innovate.

“The EU needs a refreshed approach to economic security. We are behind our global rivals in 7 of the 8 critical technologies,” said Cecilia Bonefeld-Dahl, Director-General of DigitalEurope. She emphasized the need for a comprehensive strategy, stating, “Europe still has many strengths across the value chain, including world-class research and a strong manufacturing base, yet we lack the ability to grow large successful tech companies, partly due to a lack of investment.”

Europe lags behind global rivals in 7 of the 8 technologies analyzed, with only advanced connectivity leading the way. The study highlights the importance of addressing the skills gap and increasing investments in critical areas like AI, quantum computing, and space tech to ensure Europe's competitiveness in the rapidly evolving tech landscape.