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Europe and Japan: Quiet Power in Defence Chips

Mishti Angirash on October 15, 2025
Veteran Stories

Introduction

Semiconductors are the new oil of 21st century. They are the foundation of both economy and army. Every drone, every satellite, every missile that strike is powered by chips that are as small as a nail. In modern warfare, the one that have chips controls the battle field. For years the battle field. For years the US and China fights for control over the chip design and manufacturing and technology. But there are quieter powers as well that exists and their contributions can’t be ignored for the global defence technology—Europe and Japan. 

These two regions are often seen as the secondary players are in fact the silent architects of modern semiconductor power. Europe may not produce most chips but it produces the machinery that makes chips. ASML, the Dutch company, creates the world’s extreme ultraviolet lithography systems which are essential for manufacturing cutting-edge processors (Müller, 2024). German’s Infineon and France’s STMicroelectronics focus in power devices, and automative chips used in both civilian and military systems.  This has made the Europe the backbone of global supply chain. Japan was once a chip superpower and is currently regaining strength through companies like Renesas and Sony, and with govt led projects like Rapidus aiming to produce next generation chips (Tanaka, 2024). It is re-emerging with new investments, deep expertise in lithography and packaging. This strengthens its technological sovereignty. Together, these regions quietly shape the foundation of the world’s semiconductor supply chain and play critical roles in defence: from sensors and power chips to secure communications and radar technologies, their innovations shape how modern militaries operate.

This shows how Europe and Japan have become the quiet powers in defence chips. They have mastered the most critical past of chip-making, not producing the most of them. They achieved this through a mix of industrial policy, strategic alliances, and technological specialization, maintain control over the most sensitive segments of the defence chip ecosystems. 

Background: Defence Semiconductors 101

In the age digital warfare, a country’s power is measured through its capacity to control information and technology and with army and tanks. Every missile that hits the target, every satellite that captures an image, every fighter jet that reacts in seconds depends on one thing – a semiconductor chip. These small electronic circuits act like a brain of modern defence systems. They process real time information, control sensors, detect enemy aircrafts, and keep communication secure even in the most extreme conditions. These defence chips are special chips designed for extreme conditions and are not like the ones in our phones or laptops. They survive, the heat, radiation and pressure whether inside the missiles, or in space and keep the communication safe and secure. But many of these comes from civilian innovations –this is called dual-use technology. For example, a chip designed for artificial intelligence in self-driving cars might later help in military drones. This shows that modern defence is closely linked to commercial technology. 

But this kind of dependence creates problems. The semiconductor supply chain is global and complicated too. No single country controls the entire semiconductor chain. Designs may come from America, Machines from Europe, Materials from Japan and manufacturing in Taiwan or South Korea. If any part of the chain breaks due to war, natural disaster or politics, it could affect national security. That’s why every country now wants to build its own chip eco system and reduce its dependence on others.

Therefore, this global chip is not just economical rivalry but a contest for strategic independence. Its not only about who can build this, it’s more about who controls the access to them. The U.S. and its allies work to have access to the chips. And China invests heavily to reduce its dependence on western technology. Japan and some in Europe focus on strengthening their position in supply chain. Hence, semiconductors are now as strategic as oil was once. They decide who leads in defence, communication and even in space technology. 

Europe’s Semiconductor Landscape

Most of the world’s attention on semiconductor and chips is between the U.S, Chaina and Taiwan. But Europe also plays an important and powerful role in it quietly. Its control is not on the chips or their manufacturing directly but on the technology and machinery that makes a chip. Without Europe’s support, world’s most advanced chips can’t exist. Its strength lies in tools, materials, and the advanced engineering that makes it a strategic power. 

The best example is ASML. Its is a company from Netherlands, that builds EUV lithography machines which are like printing presses that builds microscopic circuits on silicon wafers that are used in defence, AI and communications. Its technology is so advanced that only a handful of nations understands its process and hence costs hundreds of millions of dollars and only ASML knows how to make them. Every advanced chip used in fighter jets, missiles, or AI systems are dependent on ASML’s machinery. When the US and NATO pressured the Dutch govt., Netherlands stopped selling these machines to China. This shows how much Europe’s industry is linked to global defence and security (Dufresne, 2023).

The Infineon technologies from Germany creates power semiconductors used in electric vehicles, satellites, and radar systems. These chips help to control and distribute power safely in harsh conditions—important for defence technology. Like this, STMicroelectronics in France and Italy makes sensors and control chips that go in the drones, missiles and other military equipment’s.

In 2023, Europe introduced EU Chips Act to strengthen its chip ecosystem. The goal of it is o double Europe’s global chip market share to 20% by 2030 (Pirozzi, 2024). This was done to reduce its dependency on Asia and support local innovations. But challenges remain high such as the high production cost, complex rule, and slower decision-making compared to Asian competitors. 

Even with this Europe’s true power is quiet but vital. It doesn’t compete on quantity but on quality and control. Whoever controls ASML’s technology, Infineon’s power chips and STMicro’s sensors effectively co trolls the access to the world’s defence systems. Europe hence doesn’t compete to be loud but it competes to be indispensable. Its precision and restraint make it a silent but powerful force shaping global defence technology.

Japan’s Semiconductor Landscape

Japan’s journey in the semiconductor world is like a story with three chapters—rise, fall and revival. In the 1980s, Japan rules the global chip market by supplying 60% of the global chips. This fuelled the world’s electronic revolution. Companies like NEC. Toshiba, Hitachi Made the world’s best memory chips. This helped Japan become the technology leader at that time. But in the 1990s, things changed fast. Trade tensions with the U.S., over-reliance on DRAM, the rise of South Korea & Taiwan, and Japan’s slow reaction towards innovation caused a major decline. Hence by the 2000s, Japan had lost its leadership, focusing on materials and chip equipment instead of actual chip making (Szechenyi, 2023). 

This changed dramatically in 2020s. Japan is now making the strong comeback. The govt realized that semiconductors are the essential part off economic and military security. Japan realized its strategic importance of recovering domestic industry. The Economic Security Act in 2022 declared chipmaking as a matter of national security (Tanaka, 2024). Hence, Japan started giving huge support to chip companies, especially those working in defence and high-tech areas. It also offers subsidies, tax incentives, and strict technology protection measures to ensure Japan’s self-sufficiency in serious sectors.

Japan’s comeback rests on 3 industrial pillars. Renesas Electronics provides automotive and defence chips. These chips are important for radars, missile systems, and energy management in vehicles. Sony company is famous for its image sensors. They supply technology that powers surveillance systems, satellites, and unmanned aircraft. Tokyo Electron (TEL)is a global company in semiconductor fabrication equipment, providing etching and coating tools indispensable to chip foundries from Taiwan to the U.S.

To rebuild its chip-making, Japan launched Rapidus, a new company supported by the govt, IBM and big Japanese corporations like Toyota and Sony. They aim to produce 2-nanometer chips domestically by 2027. This is more a strategic declaration than industrial investment. It declares that Japan intends to regain its self-sufficiency over advanced technology. This effort shows the direct link to Japan’s National Security Strategy (2022). It joins economic resilience and defence innovation together under one basis. It puts Japan back amongst the top players in advanced manufacturing (Chang, 2023).

Initially, Japan has become trusted member of U.S. led “Chip 4 Alliance” alongside, South Korea and Taiwan. Its role is to supply manufacturing tools and materials while managing export controls against China. Now Japan doesn’t make most of the chips yet its contribution can’t be ignored. Its tools, materials and advanced sensors make it a quiet but crucial power in the semiconductor competition. 

“Quiet Power” Concept

In international power politics, strength is often measured in tanks, missiles or military alliances. But in today’s digital era, there is another “power” also— “Quiet Power”. It represents a unique kins of geopolitical influence. It is obtained from technological necessity and not military strength or political control. For Japan and Europe, this quiet power lies in their hold, over the advanced and irreplaceable elements of semiconductor ecosystem. 

Europe’s role is symbolized by ASML. It is the only company capable of producing EUV lithography systems which are needed to make the smallest and the most powerful chips. Each machine contains thousands of components obtained from across Europe and takes months to build. The United States, China and Taiwan are dependent on ASML’s technology. Similarly, Japan’s quiet power is in its material mastery. Companies like Tokyo Electron, JSP, Shin-Etsu, and SUMCO produce the high-purity silicon wafers and photoresists essential to semiconductor fabrication. 

The U.S.’s dominance lies in its chip design (Qualcomm, NVIDIA, Intel) while China seeks mass production capacity through state backed fabs, Europe and Japan hold the quiet irreplaceable power—the part that only they can make. Their quiet power doesn’t operate on threats or displays, but through strategic necessity. The world’s supply chain depends on depends on their cooperation. 

This subtle influence gives Europe and Japan a stabilizing yet strategic position in global geopolitics. Their tools and materials are used by everyone. Their quietness is not weakness but wisdom. Thus, “quiet power” captures a new dimension of strength in the 21st century—the ability to shape without shouting, lead without dominating and command dependence through mastery of technology.

Collaboration, Strategy & Challenges

As the race for semiconductor leadership intensifies, Europe and Japan have realized that survival lies in partnership. They have built strong alliances to reinforce their semiconductor positions. Through the U.S.-EU Trade and Technology Council (TTC), Europe works to align chip policy, export controls, and innovation funding. The goal is to ensure the security of semiconductor supply chain, promote transparency and reduce overreliance on China and Taiwan (Conley & DiPippo, 2024). Meanwhile the U.S-Japan Semiconductor partnership highlights joint R&D and secure production of advanced chips to strengthen years of technological trust (Government of Japan, 2023). 

Europe’s IPCEI (Important Projects for Common European Interest) framework represents internal collaboration model. It pools government funds and private investment to advance R&D in materials, chip design and microelectronics. Japan also has formed practical alliances with Taiwan and the United States  (Government of Japan, 2023). TSMA-Sony-Denso fab in Kumamoto shows Japan’s determination to restore domestic production while maintaining ties with global leaders. In parallel, Japan’s cooperation with the U.S. National Science Foundation and European institutions raises innovation in Quantum computing and AI semiconductors. 

However, both regions face systemic challenges. Innovation in R&D is being hindered in both regions by a widespread lack of skilled talent in the semiconductor sector. The cost of new fabrication plants limits the expansion to a handful of nations. Heavy dependence of Taiwan’s foundries still poses geopolitical risk. Finally, reconciling economic openness with export controls tests both Europe and Japan, especially as they restrict technology flow to China while preserving global trade credibility. 

Nevertheless, the cooperation between Europe and Japan holds promise. Europe’s superiority in precision machinery and lithography, and Japan’s leadership in materials, are complementary strengths, and both countries share democratic values and high-tech traditions. A new, robust semiconductor alliance may be built on joint ventures in supply chain mapping, rare earth material recycling, and AI-driven defence chips. In a world that is becoming more and more divided, they can work together to subtly rewrite the rules of technological power. 

The Future: Strategic Relevance

Europe and Japan are expected to become the two pillars of stability in the unstable semiconductor order by the end of this decade. Whether they remain “quiet powers” or become “strategic loud players” will depend on how they manage the interconnection of technology, security, and geopolitics.
Both fields are experiencing a significant transition toward techno-security, which entails integrating semiconductor policy into national defence and foreign policy. The EU Chips Act finances large factories, workforce training, and R&D collaborations, while Japan’s Economic Security Promotion Act invests heavily in strategic technologies like AI chips, photonics, and strong supply chains. This signifies a significant shift in policy from market tolerance to state-guided technological control.
The current sense of urgency is being driven by the possibility of a conflict between China and Taiwan, which could disrupt the global supply of chips needed for everything from missiles to medical devices.

Europe and Japan understand that the new kind of strength is resilience rather than dominance. In order to guarantee safe, democratic semiconductor networks, they are expanding local capacity, diversifying their supply chains, and establishing trilateral frameworks with the US. Analysts predict that by 2030, Japan will regain its high-end manufacturing capabilities and Europe will strengthen its position as a leader in advanced lithography and chipmaking tools, reversing decades of industrial decline. By working together, they could reestablish democratic control over vital technology ecosystems and balance the U.S.-China duopoly.

Ultimately, strategic visibility, not loud power, will determine Japan’s and Europe’s future. Accuracy, cooperation, and common sense will remain the cornerstones of their approach. In a world where silicon competition and security rivalries rule, their quiet power will become a form of technological diplomacy, influencing others through necessity rather than noise. In fact, their silence may be the loudest sound in the global tech order of 2030.

References

Government of Japan, “Diverse Talent for the Semiconductor Industry,” JapanGov: The Government of Japan – Kizuna, September 2023, https://www.japan.go.jp/kizuna/2023/09/diverse_talent_for_the_semiconductor.html

Mishti Angirash on October 15, 2025 Veteran Stories