The European Union will mobilize EUR 525 million to support start-ups and small and medium-sized enterprises engaged in semiconductor chip design. The initiative is part of Brussels’ efforts to strengthen Europe’s technology industry and reduce its dependence on foreign suppliers, The European Sting reports, citing the European Commission.
The new European Chip Design Platform was presented on November 4 by Henna Virkkunen, Executive Vice-President of the European Commission for Tech Sovereignty, Security and Democracy. The project is a key element of the European Chips Act.
Of the total financial resources, EUR 440 million is earmarked for grants to companies, while the remaining EUR 85 million will be invested in the platform’s infrastructure, technical services and the development of open-source tools for chip design. The funding includes EUR 285 million from the EU budget and EUR 240 million from participating countries.
According to the European Commission, European semiconductor design companies account for less than 1% of global revenues in this segment. This puts the continent at a disadvantage compared with the US and Asia, where leading developers and manufacturers of advanced chips are concentrated.
Through the new platform, European companies will gain access to specialized software, technical consulting, ready-made intellectual property blocks and manufacturing facilities. Such resources normally require significant investment, making them difficult for newly established technology companies to access.
Grants of up to EUR 100,000 are planned for start-ups developing initial prototypes and assessing the feasibility of their technological ideas. More advanced companies will be able to apply for funding of up to EUR 16 million to support chip development through to commercialization.
Additional support will be provided by the European network of semiconductor competence centers. It will assist companies with applications, technical development and preparations for entering the market.
The platform will operate in a cloud environment and will be managed by a consortium led by the Belgian research center imec, with the support of the Chips Joint Undertaking. Leading providers of electronic design automation tools are also participating in the initiative.
At the same time, 20 start-ups are already participating in technology and business development programs designed to help them turn their innovative developments into market-ready products.
The European Commission emphasizes that building new semiconductor factories will not be sufficient to strengthen the sector unless Europe also develops its own design capabilities. Local developers must create demand for European manufacturing facilities and contribute to the development of the entire industrial chain.
The new investment comes at a time of growing global demand for chips, driven by the rapid development of artificial intelligence, data centers, the automotive industry and digital technologies.
The initiative is part of the broader European strategy for technological sovereignty. In June 2026, the European Commission proposed a package of measures that also includes a new version of European chip legislation – the Chips Act 2.0 – aimed at promoting the design, production and use of semiconductors in the EU.
With the EUR 525 million investment, Brussels aims to create conditions for the emergence of a new generation of European technology companies that can compete more successfully in the global market and support the development of an indigenous semiconductor industry.