Real estate company Savills has predicted that the growth of semiconductor production in the EU could generate over 116 million ft² of demand for warehouses across Europe.
The semiconductor industry has faced significant supply chain issues in recent years, as a result of the Covid-19 pandemic and geopolitical tensions. In response, the European Union, along with countries around the world, has developed plans to invest in ensuring the future of semiconductor supply.
The European Chips Act, approved by the Council of the EU on 25 July 2023, sets a target of doubling the EU’s global market share in the semiconductor industry from 10% to 20% by 2030. €43 billion in public and private investment will be spent on efforts to achieve this goal.
Andrew Blennerhassett, Associate in the Industrial & Logistics Research Team at Savills, said: “We expect semiconductor demand to continue to grow sharply over the next decade, amid megatrends including AI, electric vehicles, cloud computing, and automation. Whilst Europe does face stiff competition from more established markets, sensible policymaking will provide the ingredients for successful growth.
“Ultimately, if the EU hits its target of 20% of global output, we expect to see up to 10.8 million m² (116 million ft²) of additional logistics demand by 2030.”
Savills explains that there is a direct correlation between manufacturing activity and demand in the logistics industry, which in turn affects demand for industrial and logistics properties.
Marcus de Minckwitz, Head of EMEA Industrial & Logistics at Savills, adds: “We are receiving a growing number of enquiries from semiconductor manufacturers and other related occupiers, which presents an exciting opportunity for the European markets.
“This is another demonstration of the diverse nature of the industrial and logistics sector, and onshoring, together with renewed growth in e-commerce, will fuel demand in the coming years.”
For more on the industrial and logistics property market, check out the Property section in the August issue of Logistics Manager Magazine!
