Every week, Rinchem shares important articles and topics about chemical and gas logistics, industries we operate in, and the general global supply chain. In this week's review we discuss Chips Act 2.0, supply chain resilience, and the pharma choke point.
Keep reading to see this week's hot topics.
This week's stats
€120 billion- the projected public and private investment requirement for the EU semiconductor ecosystem by 2035 EE Times
94%- China's control of the raw materials or key starting materials for amoxicillin Council on Foreign Relations
Chips Act 2.0 Puts Demand at Center of Europe’s Semiconductor Strategy
Europe’s proposed “Chips Act 2.0” shifts the EU semiconductor strategy away from simply funding manufacturing capacity and toward creating stronger domestic demand for European-designed and European-made chips. The plan aims to connect chipmakers, startups, industrial customers, and governments through “Demand Accelerators,” public procurement programs, and strategic partnerships that encourage adoption of local semiconductor technologies in sectors like AI, defense, cloud infrastructure, and smart manufacturing. The proposal also addresses Europe’s long-standing “lab-to-fab” problem by supporting chip design, advanced packaging, and scale-ups, while acknowledging that Europe still lacks sufficient late-stage funding and advanced manufacturing capabilities compared to the U.S. and Asia. Industry leaders argue that the new demand-driven approach could help build a more self-sustaining semiconductor ecosystem, though major funding decisions are still tied to future EU budget negotiations.
Supply chain shocks fuel push for more resilience
The Financial Times article examines how repeated global disruptions — from the Covid-19 pandemic and geopolitical conflicts to tariffs and energy shortages — are forcing companies to redesign supply chains that were once optimized primarily for cost and efficiency. The latest concern is a potential helium shortage tied to instability in the Middle East, which threatens semiconductor manufacturing and highlights how vulnerable highly specialized supply chains remain. Researchers and business leaders cited in the article argue that companies are increasingly shifting toward more diversified, regionalized, and resilient supply chain models through strategies such as nearshoring, “China-plus-one” manufacturing, supplier diversification, inventory buffers, and digital supply chain monitoring. While globalization is not disappearing, the article suggests it is evolving into a more fragmented and flexible system where visibility, adaptability, and resilience are becoming just as important as speed and low cost.
The Pharma Choke Point
The Council on Foreign Relations report The Pharma Choke Point argues that the United States faces a growing national security and public health risk from its heavy dependence on China for pharmaceutical ingredients, manufacturing inputs, and biotechnology supply chains. The report explains that China has strategically built dominance across key stages of drug production — including active pharmaceutical ingredients (APIs), key starting materials (KSMs), biologics manufacturing, and clinical research — creating vulnerabilities that could be exploited through export restrictions, regulatory delays, or supply chain disruptions. Researchers warn that many apparent alternative suppliers still rely on Chinese upstream materials, making diversification efforts less effective than they appear. The report recommends a long-term industrial policy focused on reshoring critical production, building allied supply partnerships, creating strategic medicine reserves, and investing in advanced pharmaceutical manufacturing to reduce reliance on China before a major disruption occurs.
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