The European Union is preparing new crisis powers to intervene in semiconductor supply chains during shortages. According to the Financial Times, the draft law would allow the European Commission to request detailed capacity data from chip companies, coordinate joint purchasing and require priority orders for critical sectors such as defence, healthcare and digital infrastructure.

The most sensitive element is the power to force chipmakers to prioritize crisis-related orders even when that means overriding existing contracts. The draft also includes fines of up to €300,000 for companies that fail to provide requested supply-chain information. Brussels could also act as a central buyer for EU countries, similar to its joint vaccine procurement model during the pandemic.

The proposal reflects Europe’s strategic vulnerability. The EU produces less than 10% of the world’s semiconductors and remains heavily dependent on the U.S. and Asia for advanced chips. Taiwan is especially critical, accounting for more than 90% of leading-edge chip manufacturing. As U.S.–China tensions turn chips into a tool of economic leverage, Brussels wants emergency tools before the next shortage hits. For companies, the message is clear: in a future chip crisis, contracts and market prices may not be the only forces deciding who gets supply.