The continent wants to grow its presence in the chip market after two decades of decline, but faces an uphill battle.
Combined with regulatory hurdles in China, the UK's national security investigation could prompt SoftBank to rethink its sale of Arm to NVIDIA.
US chipmakers call for more state aid while Google and Microsoft voice their opposition to Nvidia's Arm takeover bid.
The UK's competition authority has invited comments on the chipmaker's mega deal. Many more obstacles are likely to follow.