Urban mining, EU cooperation, niche strategy: how Switzerland can strengthen its security of supply

Instead of focussing on self-sufficiency, Switzerland should build on "smart dependence", says SATW expert Alessa Hool. In the conclusion of our series, she shows the potential of urban mining and the circular economy, why it would make sense to link up more closely with EU initiatives and what technological strengths Switzerland can contribute. Her conclusion: it takes more than just good will - it takes a systematic database and a clear strategy.

What would be the advantages of participating in European initiatives such as the EU Platform for Critical Raw Materials?

First of all, it would have to be clarified to what extent Switzerland's participation in European initiatives - for example in the context of the Critical Raw Materials Act - is even possible and desired by the European partners. In general, however, I would consider it sensible to establish stronger cooperation: at EU level and also with the national observatories for critical raw materials.

Such cooperation would provide better access to information on availability, price trends, export restrictions and geopolitical risks. This would allow procurement risks to be recognised earlier and managed more strategically. Switzerland could also benefit indirectly from the combined negotiating power of the EU. Finally, greater participation could increase the involvement of the Swiss semiconductor industry in European security strategies. This is relevant because critical raw materials are increasingly framed in geopolitical terms. Those who have a seat at the table when it comes to drawing up priority lists and crisis mechanisms tend to have better access to scarce resources in times of stress.

Positioning in European research projects - for example under Horizon Europe - is also important: for example, considering how Swiss interests can be specifically incorporated and how the knowledge gained can be translated into national raw materials policy. This requires clear contact points and processes on the Swiss side. Otherwise, participation will remain professionally enriching, but will only make a limited contribution to actually addressing Switzerland's specific supply risks.

What is the realistic potential of urban mining, electronics recycling and design-for-circularity in Switzerland to strengthen the long-term security of supply in the semiconductor sector?

Large quantities of valuable raw materials circulate in Switzerland. With an ambitious urban mining and recycling strategy, Switzerland could noticeably improve the security of supply for numerous raw materials. A consistent circular economy cannot eliminate dependencies on imports, but it can significantly reduce them. However, the actual potential for many critical technology metals is still uncertain.

At present, it is mainly precious metals and copper that can be recovered economically. The potential for silicon, gallium and germanium has so far been limited due to low concentrations and volatile prices. Technological opportunities lie in high-end recycling and design-for-circularity: products and modules can be designed in such a way that they can be dismantled and recycled more easily. This is hardly realistic for the chip itself, but for circuit boards and devices, i.e. in the way semiconductors are integrated and documented.

The basic problem remains: purchasing on the global market is usually cheaper today than the costly recovery process - a rational business perspective, but strategically short-sighted. International experience shows that the recovery of critical raw materials in the start-up phase often only pays off with government incentives. Without such instruments, the investment risk usually remains too high for private actors.

How this structural financing gap can be closed in a liberal market economy remains unresolved. What is clear, however, is that urban mining, electronics recycling and design-for-circularity are important elements for strategically strengthening security of supply.

What are Switzerland's technological or industrial strengths that could contribute to the resilience of the semiconductor ecosystem?

Switzerland has several strengths that can contribute directly to the resilience of semiconductor value chains. It is strong in precision and specialised machinery, such as measurement, testing and process equipment, which is central to quality assurance in chip manufacturing. Such technologies can reduce the need for raw materials.

There is also a high level of expertise in materials science, nanotechnology, microtechnology and power electronics. The well-developed research and innovation ecosystem creates favourable conditions for initiating targeted resilience projects - for example, for the substitution of critical materials or improved material efficiency.

In addition, Switzerland's strength in highly reliable electronics, medical technology and industrial automation contributes indirectly to resilience: These industries act as drivers for robust standards that also benefit other segments of the semiconductor value chain.

Taken together, Switzerland can contribute to resilience less through volume, but through expertise, innovative strength and specialisation. These strengths increase Switzerland's strategic importance in the overall system.

Does the motion set the right priorities, or are additional measures needed from a technological perspective?

I think it is a good and important step to include the issue of security of supply for critical raw materials in free trade agreements.

However, there is still a lack of other things in Switzerland. A comprehensive analysis of the vulnerabilities of the Swiss economy with regard to critical raw materials is still outstanding. So far, import figures for individual raw materials have only been analysed selectively, without a systematic overall analysis being available. Such an analysis has been standard practice in other countries for many years.

The fact that we in Switzerland are still comparatively passive in this respect probably has to do with our traditional reluctance to over-regulate. However, a well-founded assessment of supply risks does not necessarily have to lead to massive state intervention. Rather, it forms the basis for identifying potential vulnerabilities and countering them with a sense of proportion - for example, by giving companies better access to information or prioritising research into substitution and recycling.

What strategic direction should Switzerland take - and which measures do you think will have the greatest impact?

Switzerland should pursue a niche and resilience strategy in the semiconductor sector that focuses on "smart dependence" rather than unrealistic self-sufficiency. At the centre of this is the role as a trustworthy, highly innovative partner in selected areas such as special machines, materials and test and measurement technology.

A key building block is the systematic development of a risk and data basis: analysing imported raw materials and preliminary products and the associated supply risks, supplemented by early warning indicators, would significantly improve the currently inadequate information situation. At the same time, Switzerland should intensify its involvement in European initiatives.

Measures to strengthen its own technological competences that reduce the use of critical raw materials are particularly effective: for example, the promotion of research into material substitution, recycling approaches and specialised machinery that reduce resource consumption and susceptibility to failure. An active circular economy and recycling policy can further reduce dependence on primary imports.

A combination of data-based policies, international integration, technological specialisation and an improved circular economy offers Switzerland the greatest leverage for strengthening security of supply with a reasonable use of resources.