Reality Check: The Regulatory Dimension of the EU De-risking Strategy for Critical Raw Materials and Semiconductors

As global supply chains are exposed to mounting geopolitical shocks, the European Union is recalibrating its economic security strategy to reduce strategic dependencies and enhance indigenous industrial capacity. Two sectors stand at the heart of this effort: critical raw materials (CRMs) and semiconductors. Regulatory responses at the EU level include new benchmarks for extraction, processing, and recycling of CRMs, as well as efforts to bolster semiconductor production capacity through targeted funding and investment incentives. However, implementation gaps, internal fragmentation, and insufficient external coordination continue to hinder progress. Member states like Italy are taking steps to align national frameworks with EU objectives, focusing on CRM recycling and mature chip manufacturing. Strengthening partnerships with reliable third countries and fostering cross-sectoral policy coherence will be essential to secure Europe’s strategic autonomy at a time of increased economic securitisation.

Revised version of a paper presented at the IAI Transatlantic Symposium 2024–25, held in Rome on 9 May 2025.