EU urged to boost semiconductor & GPU stocks by 2025

EU policymakers are being urged to develop the continent's semiconductor industry and secure a GPU stockpile by 2025 in response to the United States' recent restriction on GPU exports, according to Nessim-Sariel Gaon, Co-Founder and Managing Partner of LIAN Group.

This call to action comes after the US Government announced its intention to limit the exportation of US-designed GPUs to certain countries, prompting concern from major industry figures, including Nvidia, which holds 88% of the global GPU market share.

Nessim-Sariel Gaon suggests that while the US policy has sparked anxiety in the sector, it could also represent a significant opportunity for Europe to advance its AI capabilities by developing its own local semiconductor industry and securing its position in the global market.

Despite European countries being largely exempt from the US's export caps, Gaon believes this is a crucial moment for the EU to eliminate barriers hindering innovation, fund GPU developers generously, particularly in European enterprises and universities, and streamline regulatory processes.

"The US' new GPU policy has been seen by some as an attempt to monopolise their hegemony over the sector; in actuality, for me, it's the perfect opportunity for the EU to take Biden's concerns about AI's impact on national security seriously and secure the AI capabilities it needs," Gaon stated.

Gaon emphasised the importance of removing innovation barriers, ensuring substantial funding for innovators in both academic and enterprise settings, and supporting the domestic semiconductor industry to allow Europe to become a key player in the AI market.

He noted, "European governments should remove all barriers to innovation, ensure innovators, whether in universities or enterprises, are afforded ample funding, and allow its domestic semiconductor industry to cement itself as a solid contender in the AI market. It is not too late for European AI sovereignty, and beyond the gloom, there is a real opportunity here to innovate. There is no greater time to do so – DeepSeek's recent boom proved that there are real, open opportunities for new players to enter the AI race. The EU must take that in its stride and be incentivised to fully support its local AI ecosystem."

Gaon proposes that collaboration with industry leaders, similar to the US Stargate project involving OpenAI, SoftBank, and Oracle, which intends to invest USD $500 billion in AI infrastructure, could be beneficial for Europe.

"To do that, however, it's vital it works hand in hand with the industry itself, perhaps taking inspiration from the US' Stargate project – a partnership between the Government and sector titans OpenAI, SoftBank and Oracle which will see a mammoth $500 billion invested into US AI infrastructure," he suggested.

Gaon believes the EU should not view the US's policy as detrimental but rather as a catalyst for upping the continent's competitiveness in AI technology. "Project Stargate solidifies the need for collaboration between EU policymakers and the European semiconductor industry, as well as significant investment into the most promising GPU innovators. Washington's policy shift should not be deemed a global disaster or hindrance; rather, a true chance to muscle up to the AI titans across the Atlantic. The time to act is now," Gaon concluded.