The EU Chips Act: Securing Europe's Digital Sovereignty
A comprehensive framework to strengthen the EU's semiconductor capabilities, address supply chain vulnerabilities, and double Europe's global chip production by 2030.
Chips for Europe Initiative (R&D & Innovation)
Establishes pilot production lines, competence centres, and quantum chip capabilities. Creates a cloud-based chip design platform and dedicated Chips Fund to support startups, SMEs, and scale-ups. This pillar focuses on building Europe's technological capabilities and intellectual assets.
Incentives for Manufacturing
Mobilises €43 billion in investment and sets up a supportive environment for "first-of-a-kind" Integrated Production Facilities and Open EU Foundries. Employs state aid mechanisms to drive fabrication capacity across member states, addressing the critical manufacturing gap in Europe's semiconductor landscape.
Coordination & Supply Chain Monitoring
Introduces a coordination framework and early-warning system through the newly formed European Semiconductor Board. This mechanism is designed to forecast supply issues and trigger rapid responses in crisis situations, enhancing Europe's resilience to future disruptions.
What the EU Chips Act Does
The Act's framework is structured around three complementary pillars designed to create a robust semiconductor ecosystem throughout Europe:
Chips for Europe Initiative (R&D & Innovation)
Establishes pilot production lines, competence centres, and quantum chip capabilities. Creates a cloud-based chip design platform and dedicated Chips Fund to support startups, SMEs, and scale-ups. This pillar focuses on building Europe's technological capabilities and intellectual assets.
Incentives for Manufacturing
Mobilises €43 billion in investment and sets up a supportive environment for "first-of-a-kind" Integrated Production Facilities and Open EU Foundries. Employs state aid mechanisms to drive fabrication capacity across member states, addressing the critical manufacturing gap in Europe's semiconductor landscape.
Coordination & Supply Chain Monitoring
Introduces a coordination framework and early-warning system through the newly formed European Semiconductor Board. This mechanism is designed to forecast supply issues and trigger rapid responses in crisis situations, enhancing Europe's resilience to future disruptions.
Together, these pillars create a comprehensive approach that addresses both immediate vulnerabilities and long-term strategic objectives in Europe's semiconductor sector.
How the EU Chips Fund Supports Growth
The Chips Fund serves as the financial backbone within the Chips for Europe initiative, addressing a critical gap in Europe's semiconductor ecosystem. It simplifies access to debt financing and equity, particularly for innovative small and medium-sized enterprises, startups, and scale-ups across the semiconductor value chain.
This dedicated fund—part of a larger mobilisation of over
€43 billion
Total Investment
Combined public and private funding mobilised to support the European semiconductor ecosystem
20%
2030 Target
Ambitious goal for Europe's share of global semiconductor production
10%
Current Share
Europe's existing portion of worldwide chip manufacturing capacity
By providing dedicated capital streams, the Chips Fund aims to catalyse innovation and accelerate the growth of European semiconductor champions capable of competing on the global stage.
By providing dedicated capital streams, the Chips Fund aims to catalyse innovation and accelerate the growth of European semiconductor champions capable of competing on the global stage.
What the EU Virtual Design Platform Enables
The EU Chips Design Platform represents a revolutionary approach to democratising chip design across Europe. This cloud-based, vendor-neutral virtual environment radically lowers entry barriers for startups and established firms alike.
Technical Capabilities
- Provides access to Electronic Design Automation (EDA) tools
- Offers both commercial and open-source IP libraries
- Links directly to pilot fabrication lines for rapid prototyping
- Supports advanced design methodologies and verification
Support Services
- Delivers training and educational resources
- Offers incubation and acceleration programmes
- Provides expert mentoring and technical guidance
- Facilitates financial assistance for promising projects
A consortium of 12 European partners coordinated by imec is currently developing this platform, with onboarding of startups and SMEs expected by early 2026. When fully operational, the platform will enable innovators across Europe to bring chip ideas to market more quickly and affordably than ever before.
Together, these elements of the EU Chips Act—spanning R&D, manufacturing, finance, and design infrastructure—form an integrated ecosystem poised to ignite a wave of new semiconductor ventures across Europe, strengthening the continent's technological sovereignty and economic resilience.
EIC Accelerator: Funding for Innovative Startups and SMEs
Develop and scale up game-changing innovations with the potential to create or disrupt markets. The EIC Accelerator offers grants up to €2.5 million and equity investments up to €10 million for startups and SMEs ready to scale.
Grant Funding
Lump sum contribution below €2.5 million for innovation activities (TRL 6-8), to be completed within 24 months.
Investment Component
€0.5-€10 million in equity or quasi-equity investments to fill the gap for high-risk innovation.
Business Support
Access to global partners, coaches, mentors, expertise, training, and innovation ecosystem connections.