After the United States and China, Europe is set to invest €525 million ($590 million) in chip startups. This will help them scale up faster, EU tech chief Henna Virkkunen said on Wednesday.
The European Commission and EU countries will grant €440 million to startups to help cover the cost of commercial-use chip development, and the remaining €85 million will fund a European Chips Design Platform.
At the platform’s launch, Virkkunen, the European Commission’s executive vice president for tech sovereignty, security and democracy, said, “We know that Europe can’t strengthen our position in the global semiconductor industry if we don’t succeed in chip design.”
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“Fostering a vibrant design ecosystem in turn will create demand for manufacturing facilities and also strengthen the entire value chain in Europe,” she said.
Europe generate under 1% of total worldwide revenue in the market. The platform will give startups access to chip design tools, design support services, intellectual property blocks, and manufacturing capacity. Strong demand for AI is driving growth in the chip industry.
