Brussels mobilises €525 million to boost chip companies

A European Commission today announced that it will mobilise €525 million to stimulate the creation of new European chip design companies, crucial in the semiconductor sector, in which the EU has strong external dependence.

In a statement, the European Commission states that these funds will be mobilised through a new “European chip design platform” that aims to “stimulate a new generation of European companies” in the sector.

The community executive stresses that the design of chips is “a key step in the semiconductor value chain”, since it is “an area where a significant part of innovation in the sector arises”.

Currently, the European Commission indicates that European chip design companies represent “less than 1%” of world revenues and argues that the development of new capabilities in this area will only be sustainable “if there is sufficient demand”.

“A significant part of this demand will have to come from European chip design companies,” the Community executive points out.

The new European chip design platform aims to give companies in the sector “access to tools”, “support services”, “intellectual property blocks” as well as “manufacturing capacity”.

“ These resources are often the most expensive and the most difficult to obtain for companies in the early stages,” the Community executive said.

In order to access funds under this €525 million fund, companies will have to apply through the new European chip design platform.

“ Up to EUR 100,000 are available to start-up companies, designed to create prototypes for proof of concept. In addition, the most advanced development companies can apply for grants of EUR 16 million, which will help them bear the substantial costs of chip development until they are sold,” the European Commission says.

The Community executive states that of these EUR 525 million, EUR 440 million will be used for grants, mobilised through public investment by the European Union (EU), particularly through the Community budget, and by the Member States.

The remaining EUR 85 million will serve to invest in the infrastructure of the new European chip design platform, based on a ‘cloud’, as well as the operation “of support services and the development of open source chip design tools”.

Cited in the statement, European Commission Vice-President Henna Virkkunen, with the portfolio of Technological Sovereignty, considers that this new initiative will allow European small and medium-sized enterprises in the chip design sector “to overcome obstacles and transform their innovative ideas into integrated circuits”.

“ This demonstrates that Europe is ready to meet its goals of technological sovereignty, not only with policies and commitments, but investing directly in its future,” he said.