BERLIN—German Chancellor Angela Merkel expressed concern on Wednesday that Europe cannot make the semiconductor chips and batteries it needs to compete for the production of cars as well as the development of smart appliances. Merkel told a summit on the future of innovation in Germany that Europe risked falling behind in areas like quantum computing, chips, and batteries, essential for the future of the car industry as it shifts to make more electric vehicles. “If a big bloc like the EU is not in position to create chips, I am not comfortable about that,” she said. “It is not good if you are a car nation and you can’t produce the core component.” A global chip shortage has hit automakers hard after many canceled orders when plants were idled during the pandemic. At the same time, demand for chips boomed from consumer electronics makers churning out premium devices for people …