Europe invests €525 million in chip design

Europe invests €525 million in a new platform designed to support European chip design companies. The European Chip Design Platform provides startups and SMEs with access to specialized software, technical expertise, and manufacturing facilities. Through this initiative, the European Union aims to stimulate the development of new chips in Europe.

The platform was launched by Henna Virkkunen, European Commissioner for Technological Sovereignty, Security, and Democracy. It is part of the European Chips Act, through which the EU aims to strengthen its position in the semiconductor industry and reduce its dependence on other parts of the world.

Access to expensive technology

Chip design is a key component of the semiconductor industry. This phase determines how a chip functions and what characteristics it will have. Although there is a great deal of innovation in this area, European chip design companies currently account for less than one percent of global revenue in this sector.

For startups, developing chips is also costly. Specialized design software, technical support, and access to manufacturing facilities are often difficult to afford. The new platform is intended to lower those barriers.

Startups can apply for grants through the platform. Young companies can receive up to 100,000 euros to build and test an initial prototype. Companies that are further along in their development can apply for grants of up to 16 million euros to make the transition to commercial production.

Startups and small and medium-sized enterprises (SMEs) can also receive guidance from the European network of Chip Competence Centers.

Boost for the European chip industry

Of the total investment, 440 million euros is earmarked for grants. The remaining 85 million euros will go toward the development and management of the cloud platform, supporting services, and open-source design tools.

The platform will be managed by a consortium led by the Belgian research institute imec. It is collaborating with, among others, international providers of design software and intellectual property for chips.

In addition, twenty startups are participating in EuroCDP’s development programs. They will receive technical and commercial guidance to turn their ideas into market-ready products.

With this platform, Europe aims not only to foster the creation of more chip design companies but also to increase demand for chips designed in Europe. This is crucial for the European chip industry: new factories are only viable if there are enough companies willing to have their chips manufactured there.