Strategic Autonomy: Hidden Champions and the European PCB and Advanced Packaging Capability Gap
Technical analysis of the structural vulnerabilities in European electronics manufacturing and the strategic role of “Hidden Champions” in securing hardware integrity and defense autonomy by 2030.
The foundation of European strategic autonomy is increasingly dictated by the physical layer of the digital ecosystem, specifically Printed Circuit Boards (PCBs) and advanced packaging. While high-level policy often focuses on semiconductor design, the manufacturing of these physical substrates remains a critical bottleneck for the European Defence Technological and Industrial Base (EDTIB). Modern military platforms, ranging from active electronically scanned array (AESA) radars to satellite communication suites, require high-density interconnect (HDI) solutions to function reliably.1 The loss of manufacturing capacity within this segment compromises the integrity of defense supply chains and introduces long-term risks. Without a sovereign capability to produce these fundamental components, the Union faces persistent vulnerabilities related to hardware sabotage and supply interruptions during crises. Industrial policies must address the systemic erosion of the physical electronics layer to ensure that European-designed systems are not rendered obsolete by external dependencies. The resilience of the Single Market depends on reclaiming control over these essential manufacturing processes. This technical analysis identifies the specific industrial actors and requirements necessary to mitigate these vulnerabilities by 2030. Achieving technical non-dependence necessitates the immediate localization of high-readiness microelectronics production within the allied sphere. Reclaiming this capacity is the material prerequisite for the Union’s digital and military sovereignty.