2025欧洲经济与科技创新发展态势、挑战及策略研究报告 Accelerating Europe Part 1 of 3 The State of European Innovation and Why It Matters

AcceleratingEurope

Part1of3

TheStateofEuropean

InnovationandWhyItMatters

February2025

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FOREWORD

TheopportunityinEuroperightnowisunprecedented

Ifwetakebold,positiveactioninthenextdecadewewillrealizetrillionsofdollarsofadditionalvalueandmillionsmorejobsinEuropeantech.Weknowwhatourstrengthsareandwhereweneedtochangetounlocktheregionʼsfullpotential.

Europeneedstoseizethemoment,setthetermsandbuildaworldwheretechnologydrivesprosperity,trustfuelsgrowth,andambitionshapesthefuture.

Iʼmoptimisticbecausethereareafewessentialingredientsanyecosystemneedstothrive-experiencedtalent,capitalandmindset.

Europehasalwayshadexceptionaltalent

andourearly-stageflywheelisspinning.Theregionishometo35,000early-stagestartups,morethananyotherglobally.

Newfoundersarebuildingwithmoreexperienceandambitionthanever,supportedbyastrongpipeline

ofearly-stagecapital.

Thesuccessofthisecosystem-building

meansEuropeʼsscaleuppotentialhasneverbeengreater.Buttotakethisevenfurther,

Europemustaddressa$375bngrowth

capitalfundinggapwhichuntilnowhasleftEuropeanstartupshalfaslikelytoraise

growthroundsastheirUScounterparts.

IncreasedinvestmentfromEuropeanpensionfundsandmajorinsurers,togetherwiththenextgenerationofgrowthinvestors,could

helptoaddressthisgapandyieldsignificant,long-termvaluefortheEuropeaneconomy.

Capitalalonewonʼtdeliverlong-termreturns,though.Itneedstobeaccompaniedbya

positive,long-termmindsetandhigh

toleranceforrisk.Weoncewonderedwhenthefirstbilliondollarcompanieswould

emerge:nowwehave350ofthem.Thenit

was$10bn,then$100bnandweʼveseenArm,ASMLandSpotifybreakthoseceilings.

Europeʼsfounderswillalwaysrisetomeetthenextlevelofambition,nomatterthe

scepticismorthechallengesaheadofthem.Weneedtocreatetherightconditionsto

allowthemtoflourish.

TomWehmeier

Partner&HeadofIntelligence

atomICO'

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Source:

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Thisreportisthefirstpartofatrilogy

Techtransfers

Adeep-diveintotheuniversityspinoutecosysteminEurope

EUFrameworkProgrammes

Adata-drivendeepdiveintotheEUʼsFrameworkProgrammesandtheirimpactonstartups,innovationandvaluecreation

AcceleratingEurope

AboutthestateofEuropeangrowthandtherelationshipwithinnovation,competitiveness,entrepreneurshipandventurecapital:challengesandopportunities

WorkinProgress

Coming3March2025Cominglate2025

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Dealflow.euisthepremierplatformconnectingEUstartupswithinvestors,corporates,andecosystemenablers.BackedbytheEuropeanCommission,itcombinesdeepexpertiseinventurecapitalwithamissiontoempowerEUinnovations.Withmorethan600investorsand200corporatesintheirnetwork,Dealflow.euhasbeenfacilitatingmorethan1,000introductionsandhassupportedEuropeʼsmostpromisingdeeptechstartups.

Dealflow.euhasalsolaunchedVentures.eu,afunddedicatedtoinvestinginthebestEU-backedfounders.

Dealroom.coisaglobalintelligenceplatformfordiscoveringandtrackingthemostpromisingcompanies,technologiesandecosystems.ClientsincludemanyoftheworldʼsforemostorganizationssuchasAccel,IndexVentures,McKinsey,BCG,Deloitte,Google,AWS,Microsoft,Stripe.

Dealroompartnerscloselywithlocaltechecosystemdevelopmentagenciesandenablers,tocreateacomprehensivemulti-dimensionalblueprintofthetechecosystem,includingcapital,talent,innovation,entrepreneurshipandoveralleconomicdynamism.

1MacropictureforEurope

2BigTechandPowerLaws

3RiseofEuropeanventure&innovation

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4Unlockinggrowth&investmentAdditionalinfo

Forexample:WSJ.

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“America'seconomyisnearly

twicethesizeoftheeurozone's.Theyweresimilarin2008.”

OrsowrotetheWallStreetJournallastsummer’echoingabroadersentiment-andadiscussion

that’sbeengoingonforafewyearsnow:isEuropeslidingintoamiddle-tiereconomy?

Chartsliketheoneontherightweresharedwidely’alongwithmemesaboutbottlecaps’USBplugs’

delayedAIreleasesinEurope’andcomplaintsaboutrudewaiters.EuroDoomerismincreasinglyfilled

manyfolk’ssocialmediatimelinesin2024.

Forexample:Bruegel,Krugman,Krugman,CER.

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Andyet,economistskeep

pointingoutthatthispessimismiswayoverblown.

Exchangerateimpact,purchasingpower,inflation,demographics,unsustainablefiscalpoliciesandtheUSshaleboomaredistortingthepicture.

“InsteadofworryingabouttheUS,Europeshouldfocusonitselfandavoidrepeatingpastmistakes.”

AslakBerg,ResearchfellowatCER

Thisquoteseemslikesageadvice.Europedoes

facerealchallenges.InSeptember2024,theDraghireportcameout,whichdidagoodjobgivinga

realisticassessmentofthesituationEuropeisfacingandproposingseveralshorttermandmediumtermreforms.

Page/8

aheadto$10Tbehind.

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Source:

DealroomanalysisbasedonWorldBankdata.*EUwentfrombeing$1T

Since2008,a$11trillion*nominalGDPgapemerged;thatdeservessomeunpacking

$11trillion*

Gapsinceʻ08

Innominalterms

Page/9

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Source:

Dealroom.coanalysisbasedonFREDdata.

Currencyexchangerate

changesaremostofthestory.

€strengthenedby36%/

$weakenedby26%

Sincethe2008Global

US$strengthenedby50%/

€weakenedby34%

FinancialCrisis,theEuroweakened34%relativetotheDollar

WhilethisdoesimpactconsumerpricesitdidnʼtmakeEuropeanssuddenly34%poorer—justastheydidnʼtautomaticallybecome36%richerbetween1999and

2008.Economicstatisticsaccountforthesefluctuations

usingmeasureslikePurchasingPowerParity,whichcanprovidevaluablecontext.

Exchangeratevolatilityalsohasasignificantimpactonyear-over-yeargrowthcomparisons,whichiswhygrowthratesareoftencalculatedusingconstantexchangerates.

Lastly,growthfiguresaretypicallyadjustedforinflation.Theseadjustmentsarenotarbitraryor

misleading—theyʼreessentialformeaningfulanalysis.

ComparingEU27andUSeconomies:nominal,FX-adjusted,andPPPperspectives

▇USA▇EU27

NominalGDP,currentprices(US$)RedlineisconvertedtoUS$witha

fluctuatingexchangerate.Usefulfor

comparingpositionontheglobalstage

NominalGDP,constantʻ08FXrate(US$)Usingafixedexchangerateeliminates

distortionscausedbycurrencyfluctuationsbutdoesnotaccountforpricelevel

differencesbetweencountries

PPPadjustedGDP(US$)

PPPaccountsforcost-of-livingdifferencesandisusefulforcomparinglivingstandardsandrealpurchasingpoweracrosscountries.Healthcareisabigitem,forinstance*

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Source:Dealroom.coanalysisbasedonWorldBank,IMF,FREDandEurostat.

Note:*PPPaccountsfordifferencesinpricelevelsacrosscountriesbyusingacommonbasketofgoods.

Thebasketofgoodstypicallyincludesfood,beverages,housing,utilities,transportation,healthcare,education,clothing,recreation,andmiscellaneoushouseholdandpersonalitems.

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TheUSgovernment

added$24trillion

intotaldebtsincetheGFC,whileitsGDPgrew$14trillion/year

duringthattime

Meanwhile,Europehasfocusedonfinancialstability.

ItshouldbenotedthatGDPisanannualfigurewhiledebtrepresentsastock.

Page/11Source:Dealroom.coanalysisbasedonEurostatandFREDdata.dealroom.co

Europeʼsdeclining

+0.6%/yr.

+0.4%/yr.

workingagepopulationisadragonGDPgrowthandaccountsfora0.6%GDPgrowthgap

AsperDraghireport:"TheEUworkingage

populationhasstarteddecliningoverthepast

decade,mainlyowingtodecliningbirthrates.

+0.1%/yr.

Positivenetinwardmigrationdoesnot

compensatefortheEU’spopulationdecline.ThisdeclinestandsincontrasttotheUS,whose

-0.2%/yr.

populationisexpectedtocontinuetogrowduringthenextdecades,albeitataslowingpace."

Changesinretirementageand/ormigrationpolicyagearewaystodealwiththis-bothnotthemostpopular.Persistenceofthesetrendsremainstobeseeninlightofchangingimmigrationpolicy,

especiallyintheUS.

Page/12Source:Dealroom.coanalysisbasedonWorldBankdata.dealroom.co

Whenyoustripawayallmentionedeffects,

yougettoproductivity:

GDPperhourworked.

Andthereʼsstillaproblem

Startingin1995,theUSexperienceddigitalrevolution

resultinginariseinproductivitynotseeninEurope.Thenin

2009-2010theUSbrokeawayagain,intheaftermathoftheGFC.NowtheUSAisdivergingawayagain,whileEuropeis

stagnating.

Giventhetimingofthesebreak-outmoments,itseemsvery

plausiblethatthedivergencewascausedbybothEuropeʼs

weakertechsectorandlowerinvestmentduringtimesofcrisis(GFCandCovid)

Itisnotoriouslyhardtoreallyknowwhyitʼshappening.

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Source:

Dealroom.coanalysisofOECDdataandestimates,datafrom1971to2023.

Laborproductivitymeasureshowmuchoutputisproducedforeveryhourworked.

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Source:

Dealroom.coanalysisofOECDdataandestimates,datafrom1971to2023.

Laborproductivitymeasureshowmuchoutputisproducedforeveryhourworked.

Therehavebeenmarked

slowdownsinproductivityinEuropeʼsmostadvanced

countries.

Europeʼsproductivitypuzzlebecomesevenhardertosolvewhenlookingonacountrylevel,withmultipletrendsatplay.

NetherlandsusedtobeaheadoftheUS,buthasfallenfarbehindsince2008.MostEurozonecountriesdoingpoorly.

TheUKandItalyhavedramaticallystagnated.

Dependingonpoliticalleanings,peoplewillblame:

Austerity

Net-zeroinitiativesExcessiveregulation

LackoftechnologicaladoptionCulture

InSanFrancisco-Oakland,realGDPperworkeris

approaching$600K

ThisdataconfirmsthatSiliconValleyʼstechnologysectorisamajordriverofproductivitygains.Thisislikely

impactingtheeconomyintwoways:

theproductionoftechnologyandtheadoptionoftechnology.

Page/15Source:PaulKrugmananalysisofBLSandBEAdata.dealroom.co

UStechhubsandshaleoil&gasareasleadtheway.ButUSacrosstheboardispullingawayfromEurope

Page/16Source:Dealroom.coanalysisbasedonIMFandBEAdata.dealroom.co

ShaleboomgavetheUSeconomya$0.5trillionboost,plusastrategicadvantage.Meanwhile,theEU27remainshighlyenergydependent

“In2010,theUShadatradedeficitin

energyworth$360billion,whichby2022hadturnedintoasurplusof$65billion.

Usingaback-of-the-envelopecalculation,thatchangeinthetradebalancealone

boostedUSGDPby1.8percent,even

beforeaccountingfortheeffectsof

increasedemploymentandinvestmentintheoilsector,andlowerUSelectricity

pricesduetoabundantnaturalgas….Buttherapidgrowthinshaleoilandgasproductionislargelyover.“

AslakBerg,CER

Page/17Forexample:CER.

Insummary,outofthe$11trillionGDPgap,only14%isaboutproductivity,buttheother86%alsodeservesattention.

Strategicfocusareas

±$0.5trillion

±$11trillion

NominalGDP

gapcreated

sinceʻ08

±$1trillion

±$1trillion

±$1.5trillion

±$6.8trillion

USdeficitisadding

$1.7trillionannual

GDP,vs.EU27'sdeficit

below$0.6trillion

Shaleoil&gasimpact

onnetexports*

(excludingeffectof

cheapenergy)

Demography:

workingage

populationinUSA

grew9%faster

cumulativelysince

2008

ExchangerateProductivitygrowth

Whenusingexchange

ratefromʻ08(=year

fromwhichwe

counted$10Bgap

started)

Page/18Source:Dealroom.coanalysis.*StanleyPignalBoTEanalysis(confirmedbyotherguesstimatedfigures).

Lookingahead,

therearestorm

cloudsonthe

horizonintheformofde-globalisation

Europeʼsopennesswasanassetinaglobalisingworld.Butnowithasbecomeavulnerability.

Page/19Source:Dealroom.coanalysisbasedonEurostat,OECDandIMFdata.dealroom.co

“

IbelieveEuropehasarealopportunityinfrontofitright

now.Thegeopoliticalclimateispavingthewayforustoexcelinsomeverykeyareas-andweneedtotake

advantageofthis.WeneedtostopadoptingAmericanopinionsandideasabouteverythingwedo.Wedonotneedtoreplicateeverything,wearenotAmerica.”

RoxanneVarza

Director

Page/20

1MacropictureforEurope

2BigTechandPowerLaws

3RiseofEuropeanventure&innovation

4Unlockinggrowth&investmentAdditionalinfo

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Marketshareinselectedkeylayersoftechnology*

UStechcompanies

ChatGPT,Claude,Perplexity,Gemini,Copilot90%

LLMChat

Search

Social

90%

Google

Meta

Application

layer

75%

dominatekeysegments,althoughtherearesomenotableexceptions

Meta,Google

70%

Onlineads

84%

WebbrowsersVideostreaming

Chrome,Safari

Youtube,Netflix

80%

UStechcompanieshavebeendominatingthefieldin

Cardnetworks

ComputerOS

MobileOS

ServerOS

FoundationalAI**

Cloudhosting

90%

Visa,Mastercard

severalkeywaves,andbeenfirstand/orlastmover.

80%

98%63%

Windows,MacOS

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Android,AppleiOS

Foundationallayer

Linux

OpenAI,Microsoft,AWS,Google,Anthropic

AWS,Google,Microsoft

Intel,NVIDIA,AMD,Bcom61%

87%62%

TSMC

62%

Computelayer

ARM

SemiconductordesignSemismanufacturing

99%

ASML95%

MobilechiparchitectureEUVLithography

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Source:

*Dealroomindicativeestimatesbasedondesktopresearch.

**Basedonlate2023data,doesnotincludexAI,DeepSeek.

%ofjobsatVC-backedtechcompanies▊VC-backedtechcompanies

68%

BayArea

USA

TheUSeconomyiswaymoretiltedtowards(VC-backed)entrepreneurship

24%

VC-backedcompaniesareamajorjob

1.8%

0.8%

0.3%0.1%

EU27

creationengine.AquarterofalljobsintheUSareatventure-backedtechcompanies.Alotofthesejobsarewell-paidhigh

UK

productivityjobs.

Germany

France

TheEU-27bycomparisonVC-backed

companiesaccountforunder2%ofalljobs,butthatpercentageisincreasing.

Italy

<0.01%

Page/23Source:Dealroom.coestimatesdealroom.co

S&P500isworth$46trillion,ofwhich$30trillionfromVC-backedcompanies.TheStoxxEuropeisworth$15trillion,ofwhich$2trillionfromVC-backedcompanies

$46trillion

$30trillionfromVCbackedcompanies

$28trillion

$18trillion

$15trillion

$2trillionfromVCbackedcompanies

Page/24Source:Dealroom.coanalysis.STOXXEurope600basedonfullmarketcap,notjustfreefloat.dealroom.co

USstockmarketperformsbetter…

...butwhyisthatthecase?

●USismoretiltedtowardshigh-tech,whichishigherriskandhigherreward(beta)

●OverallUSeconomybeinggearedforhigherrisk/higherreward(beta)

●Also,moreaggressivemonetaryandfiscalpolicyinUS

●PersistenceofunrewardedandidiosyncraticrisksinEurope(liquidity,regulatory

headwinds)

●MarketsunderestimationofPowerLaw?

Page/25Source:Dealroom.coanalysis.dealroom.co

Ontheimportanceofhavingastrongtechsector:

"Wethinktechisatop-tierpolicybecauseitgoes

righttotheheartofwhetherAmericaisastrongcountry.Ifyoulookatwhathappenedinthe20thcentury—agreatcenturyforAmerica—theUnitedStateswononthreefrontsthatfedintoeachother.One,wewerethetechnology

leader.Two,webecametheleadingeconomic

superpower.Three,wehadthestrongestmilitary.

Theyʼreallinterconnectedbecauseifyouʼrethetoptechpower,youʼrelikelytobethetopeconomy,andifyouʼrethetopeconomy,youcanaffordthebestmilitary.

Especiallyformodernnationalsecurity—sinceitʼsrootedintechnology—youneedtobetheleaderintechifyouwanttoprotectyourcountryandpreserveyourwayoflife.”

MarcAndreesseninpost-electionpodcast

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GlobalcorporateR&DisnowdominatedbyafewbigUShigh-techcompanies.

TopR&Dspenders

TopR&Dspenders

Alphabet,Meta,Apple,

Microsoft,Intel,

Broadcom,Oracle,

Qualcomm,NVIDIA,Cisco

TopR&Dspenders

Roche,AstraZeneca,

Novartis,GSK,Sanofi,

Siemens,Mercedes-Benz,

Stellantis,Bayer,

Continental

Merck&Co,Johnson&

Johnson,Pfizer,EliLilly,

Bristol-MyersSquibb,

AbbVie,GileadSciences,

TopR&Dspenders

SAP,Nokia,ASML

KolonTissueGene,

Moderna,Amgen

TechCompaniesNon-Tech

Page/27Source:DealroomandFlowPartnersanalysisof10,000publiccompanies.dealroom.co

Mag7haveinvested$49Binstartupsin2024.MorethanallVCintoChinaorEU27.

$49B

$38B

$32B

$16B

Mag7investmentintoStartupsAllVCin2024

Page/28Source:Dealroom.co.dealroom.co

entrepreneurialculture

Apple

Cisco

AMDLSILogic

SequoiaCapital

“FairchildDiaspora”

Fairchildcreated

BecomescradleofSiliconValley

G.Moore

inspireVCgrowth

W.Shockley

Co-Inventor

BellLabs

Inventionofthe

Transistor

SiliconValleyʼsGroundZero

Spawnsdozenofsp

Employeessprea

d

VCfirminSiliconValley

Becomesleading

in–offs

alentine

tingExec.

Sequoiathrives

inecosystem

DonV

Marke

Fairchi

ldSemicon.

E.K

leiner

Shockley

Movesto

Researchhub

KleinerPe

erPerkins

rkinssuccess

R.N

Traitorou

Semicon.

California

broadertechindustry

influencing

Intel

oyce

Klein

Majorplayerintechecosystem

Investintechstartups

s8leave

Semiconductorinnovation

EarlyVentureCapitalfirm

19251947195619571968197219781987

Page/29dealroom.co

AllMag7companiesstartedwithasimpleidea,notagrandindustrialstrategy

–andallhadaccesstoavastpoolofexperiencedventurecapitalists

Company

Microsoft(1975)

Apple(1976)

Nvidia(1993)

Amazon(1994)

Google(1998)

Tesla(2003)

Meta(2004)

Initialvision

Acomputeron

everydeskandin

everyhome

User-friendly

personal

computers

GPUsforgaming

industry

Earth'sbiggest

bookstore

Organizethe

world's

information

Accelerateworld's

transition

tosustainable

energy

Connect

college

students

Beginnings

DevelopedAltair

8800softwareina

modestoffice

BuiltAppleIina

garage;soldVW

MicrobusandHP

calculatorfor

funding

Startedina

smalloffice

Startedonline

bookstorein

agarage

Operatedout

ofSanJose

garageof

SusanWojcicki

Veryrockyand

scrappystart

Launchedfrom

aHarvard

dormroom

Early

VCbacking

Yes,5yearsafterfounding

Yes

Yes

Yes

Yes

Yes

Yes

Page/30Source:Dealroom.co.dealroom.co

EUROPEWASATTHEFOREFRONTOFTHESEMICONDUCTORINDUSTRYIN1950s

UK:Colossus

Inthe1930sand1940s,theUKwasagloballeaderincomputing,pioneeringfoundationaltechnologies.AlanTuringdevelopedthetheoreticalgroundworkformoderncomputers,whilethe

Colossus,builtatBletchleyParkduringWWII,wastheworldʼsfirstprogrammabledigitalcomputer.Post-war,theUKcontinuedinnovatingwiththeManchesterBaby(1948),thefirstcomputertostoreprogramselectronically,andmachinesliketheFerrantiMark1andEDSAC.

However,theUKfailedtocapitalizeonthesebreakthroughsduetoheavygovernmentcontrolandanemphasisoncentral

planning.Computerswereseenassensitivetechnology

requiringstrictoversight,leadingtoafocusonnationalized

industriesandcentralizedsolutionslikeICL(International

ComputersLimited).UnlikeSiliconValley,whereprivatecapitalencouragedrisk-taking,theUKʼsinnovationremainedconfinedtogovernmentlabsandacademia,limitingcommercialization.

Thistop-downapproachalsodiscouragedprivateenterprise.

TalentedindividualsmovedtotheU.S.,whereventurecapital,likeSequoiaCapital,fueledentrepreneurship.Withoutathriving

privatesectororfundingecosystem,theUKmisseditschancetobuildtechgiantsmuchearlier.

France:pioneerthatfellbehind

Europestartedstronginthelate1940s,withFranceindependentlyinventingthetransistorshortlyaftertheU.S.However,despitethisearlypromise,

Europe—particularlyFrance—lostitsleadduetoseveralfactors.Inthe1950s,

politicalprioritiesshifted(e.g.,Francefocusedonnucleartech),andEuropeaneffortslackedtheinterdisciplinary,practicalfocusoftheU.S.,whereBellLabsshared

knowledgewidely,fosteringinnovationandproductionscale.By1960,evenJapanoutpacedFranceintransistoroutput.

The1960ssawtheU.S.leveragemassivemilitarydemand(e.g.,MinutemanII,Apolloprogram)todriveintegratedcircuit(IC)development,whileEuropeʼs

consumer-drivenmarketprioritizedcostoverperformance,leavingfirmslikePhilipsandSiemensfocusedonoutdatedtechlikegermaniumtransistors.Inthe1970s,

Japancaughtupviagovernment-backedconsumerelectronics(e.g.,Sonyradios),whileEuropeʼsfocusoncomputersoversemiconductorswidenedthegap.

Inthe1980sand90s,Europeʼsattemptsatrecovery—likeFranceʼsmicroelectronicsplanandtheMegaProjectwithSiemensandPhilips—falteredduetoinsufficientscale,relianceonforeigntech(e.g.,Toshibalicenses),andcompetitionfromAsiaʼsrisingplayers(e.g.,TSMC,Samsung).By1991,Europeʼsglobalsemiconductor

productionsharedroppedto10%,downfrom60%in1979.

Today,Europeholdsa10%share,withstrengthsinnicheareas(e.g.,industrial,

telecom),butitlagsinhigh-endchips.The2021EUChipsActaimstodoublethisto20%,thoughhistoricalchallenges—productionscale,marketdemand,andglobal

competition—suggestatoughroadahead.

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Source:

Dealroom.codesktopresearch,includingAsianometry.

VCISDOMINANTBUTNOTONLYROUTEFORSTRATEGICINNOVATION

ASML:corporateinnovation

Inthe1980s,theNetherlandsemergedasanunexpected

powerhouseinadvancedsemiconductormanufacturing,thankstoASML.Foundedin1984asajointventurebetweenPhilipsand

AdvancedSemiconductorMaterialsInternational(ASM),ASMLwasinitiallyasmallplayerinthenascentfieldofphotolithographytools,criticalforproducingever-smallersemiconductorfeatures.With

backingfromDutchindustrialpolicy,includingpublic-privateR&DprogramslikeEureka,ASMLcollaboratedcloselywithacademiaandpartners,creatingbreakthroughslikeextremeultraviolet(EUV)

lithography.Thistechnology,criticalformodernchipfabrication,cementedASMLʼsdominanceintheglobalsemiconductor

equipmentmarket.

ASMLʼssuccessillustrateshowsustainedinvestmentinresearchandanecosystemofinnovationcandriveindustryleadership.Bythe

2000s,ASMLwasunrivaled,becomingthesolesupplierofEUV

lithographymachinestogiantslikeTSMC,Intel,andSamsung,enablingtheproductionofcutting-edgechipsusedineverythingfromsmartphonestoAI.

TSMC:industrialstrategy

Aroundthesametime,Taiwanadoptedastrategicfocuson

semiconductorsaspartofitsindustrialpolicy.TheTaiwan

SemiconductorManufacturingCompany(TSMC)wasfoundedin

1987asastate-backedinitiativeledbyMorrisChang,whohad

workedatTexasInstruments.Unliketraditionalsemiconductor

firms,TSMCpioneeredthe“pure-playfoundry”model,focusing

exclusivelyonmanufacturingchipsdesignedbyothers.ThisallowedfablesscompanieslikeNvidia,Qualcomm,andAMDtothrive,fuelingTSMCʼsrapidgrowth.

Supportedbygovernmentfundingandpartnershipswith

institutionslikeITRI(IndustrialTechnologyResearchInstitute),TSMCdevelopedcutting-edgemanufacturingprocesses,becomingthe

worldleaderinadvancedchipfabricationbyt