The European Commission has unveiled a €525 million initiative to nurture a new generation of chip design companies across the bloc. Announced on Wednesday, the European Chip Design Platform will provide early-stage firms with design tools, access to intellectual property and manufacturing, and grants of up to €16 million.
Chip design is a critical stage in the semiconductor value chain, where much of the industry's innovation originates. Yet European companies currently generate less than 1% of global revenues in this segment, according to the Commission. Officials argue that this weakness undermines the EU's broader chip strategy: new manufacturing capacity in Europe will only be sustainable if there is sufficient demand, and much of that demand must come from European designers.
The stakes extend beyond start-ups. New European factories will only pay off if European designers supply the demand, officials say. The platform aims to build European demand and know-how at the start of the value chain, rather than competing solely on factory capacity.
Strategic objectives and support
Henna Virkkunen, the European Commission's Executive Vice-President for Tech Sovereignty, Security and Democracy, said: “The European Design Platform gives our chip start-ups and SMEs the support they need to overcome the barriers to turn their innovative ideas into silicon.” She added: “It shows how Europe is ready to act on its technological sovereignty goals, not only through policy and promises, but also by investing in our future.”
The platform is a core component of the EU Chips Act, which sets out five strategic objectives, including building and reinforcing Europe's design capacity in advanced chips. The initiative is implemented through the Chips Joint Undertaking.
Europe's position in the global chip industry has been under pressure for several years. The Chips Act was designed to lift the EU to a 20% share of global semiconductor production by 2030, up from around 9% in 2020. However, a 2025 report by the European Court of Auditors concluded that this target is very unlikely to be met.
Chip manufacturing capacity is concentrated in a handful of companies. Taiwan's TSMC now produces about seven in every ten chips made for other firms. The most advanced chips, which power artificial intelligence and the latest smartphones, are made almost entirely in Taiwan and South Korea. The US, Europe and Japan are all trying to build their own capacity to reduce that dependence.
Supporters of the Chips Act argue it has helped reverse a long decline. A Commission official said it laid a strong foundation and put Europe back on a path for growth after two decades of decline. The design platform is part of that effort, aiming to foster innovation and reduce external dependencies.
While the initiative focuses on chip design, it also aligns with broader European efforts to bolster technological sovereignty. For instance, Spain's Indra-led alliance to safeguard undersea cables highlights the bloc's push to secure critical infrastructure. Similarly, the EU's military readiness goals face challenges despite record spending, underscoring the need for strategic investments across sectors.
The platform is expected to attract start-ups from across the continent, from Berlin to Grenoble, and from Eindhoven to Leuven. By providing access to essential tools and intellectual property, it aims to lower the barriers that have historically hindered European chip design innovation.
As the EU seeks to strengthen its semiconductor ecosystem, the success of this initiative will be closely watched. Whether it can translate €525 million into a thriving design sector remains to be seen, but the Commission is betting that it will.
