Europe to invest €525 million in chip startups to catch up with US and China
SMH•The European Union will invest €525 million in chip startups, including €440 million in grants and €85 million for a chip-design platform, to help Europe catch up with the United States and China.
1. Funding for startups
The European Commission and EU countries will provide €440 million in grants to help startups cover the cost of developing chips for commercial use. Another €85 million will fund a European Chips Design Platform.
2. Design platform access
The platform will give startups access to chip-design tools, support services, intellectual property blocks and manufacturing capacity. European chip-design companies account for less than 1% of global revenue in the segment, the Commission said.
3. Industry context
EU tech chief Henna Virkkunen said strengthening Europe's position in semiconductors depends on succeeding in chip design. She said a stronger design ecosystem could create demand for manufacturing facilities and strengthen Europe's value chain. The chip industry is booming due to strong demand linked to AI.
