India, Feb. 25 -- The latest earnings reports from Europe's top semiconductor firms-NXP (NXPI), Infineon (IFNNY), and STMicroelectronics (STM)-underscore a growing crisis in the continent's supply chain. As auto and industrial semiconductor demand falters, the entire European electronics manufacturing ecosystem is feeling the strain.

The slowdown isn't just about weak revenue; it has serious implications for European foundries, fabless chip designers, and suppliers of critical semiconductor materials. With increasing uncertainty over a potential return of U.S. tariffs under Donald Trump, the situation is evolving into a supply chain crisis that threatens Europe's position in global chip manufacturing.

On the auto front, European automak...