The semiconductor industry could generate more than 10.8m sq m of warehouse demand in Europe over the next seven years, reveals new data from Savills.
According to the firm’s latest Spotlight, Semiconductors and the Logistics Sector, Europe’s share of semiconductor production will need to more than double to reach the EU Chips Act’s target of 20% of global output by 2030 and the EU has set aside €43bn to attract investment into semiconductor fabrication labs.
The semiconductor market was severely disrupted by the pandemic with a sudden surge in demand for electronics and automobiles outpacing available manufacturing capacity.
Andrew Blennerhassett, associate in the industrial and logistics research team at Savills, said: “We expect semiconductor demand to continue to grow sharply over the next decade, amid mega-trends 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 10.8m sq m of additional logistics demand by 2030.”
Marcus de Minckwitz, head of EMEA industrial and logistics at Savills, added: “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.”
