Even if Europe could replace the dependence of Intel and AMD processor, for example with home grown RISC-V processor, where in Europe could such processor be manufacture in a secure and somehow cost effective way? Then there are other chips and components like memory chips, network components. How about secure European network routers which for networks and datacenters in Europe?
https://www.techspot.com/news/107073-researchers-uncover-hid...
Silicon level backdoors.
https://www.wired.com/2016/06/demonically-clever-backdoor-hi...
If they can make the EUV machines I doubt it’s beyond Europe to do the manufacturing at higher levels.
And as commented elsewhere, ARM
In general, in Europe there is research infrastructure that I think could be used at a medium scale for important applications (but I am not a professional).
There is the NanoIC research line at imec (2nm), CEA-Leti incomming 7nm FD-SOI pilot lines, and in terms of full production lines, Global Foundries Dresden (12 nm), ESMC (12 nm, in construction), and the various FeRAM/FMC projects I can't keep track of (Neumonda for example).
I would be more worried about designs, because outside of ARM (and Imagination Tech, both in the UK), I don't know any competitive European designs. (about routers NXP already makes router chips with accelerators on top of ARM cores, used for example in the Mono Gateway, but they are fabbed on old TSMC nodes)