Lots of mentions of "EU regulations" in this discussion, but not a single concrete case of a regulation that would be to blame.

The combination of Trump's Iranian shitshow and Putin's Ukranian madness, means energy prices in Europe are currently insane and predicted to keep rising. Uncertainty due to the possibility of war is not exactly conducive to investing in fabs either.

Europe has been deindustrializing for decades, and IMO that's had more to do with profitability than anything else. That hasn't changed.