In the chip formation process, materials are cut through mechanical means by using tools like milling cutters, saws, and lathes. It is an integral part of the engineering of developing machines and cutting tools.

Lithography is the most important processing technology of integrated circuits and the most critical technology for manufacturing chips. In the entire chip manufacturing process, the implementation of almost every process is inseparable from the technology of lithography.

The EU not only does not have sufficiently advanced fabs for semiconductor chip manufacturing, but the production capacity for packaging and testing plants is also lacking. With production mostly concentrated in China and Taiwan, and with the EU lagging behind, the "Chip Act", proposed by the EU is expected to help the EU semiconductor industry to catch up.