They should, but sadly it's extremely difficult for PCB board manufacturing to return to Europe.

EU has FTAs with Japan and SK, and others that dominate the segment like Taiwan, China, Thailand, Malaysia, Vietnam, and India have already unlocked public-private subsidized for the sector.

Additionally, the big players in the industry like ZDT, Unimicron, Nippon Mekatron, Foxconn, Compeq, TTM, and Flex have much stronger financial and political linkages in Asia or the Americas.

This fab itself is important, but was extremely difficult to stand-up and was largely a result of the supply chain issues that the automotive industry faced during zero covid, so it basically took 6 years to execute on this project. That lag-time is the biggest issue unless individual European states decide to take industrial policy their own hands, which becomes expensive very quickly.

Concentrating on building a niche in compound semiconductors as well as 2.5/3D packaging would probably be the best bet for the EU today, but I expect to see French-German industrial rivalry to undermine coordination.