European Commission launches platform to fund chip design startups

The European Commission launched the European Chip Design Platform to support early-stage companies in the semiconductor industry.

This new initiative operates under the EU Chips Act and provides a pool of €525 million to help startups develop new chip designs. The platform offers these firms access to manufacturing resources, intellectual property, and grants of up to €16 million. The Commission launched this initiative because European firms currently generate less than 1% of global revenues in chip design.

Officials believe that building new manufacturing capacity in Europe will only be sustainable if there is enough local demand from European designers. By supporting small and medium-sized enterprises at the start of the value chain, the Commission aims to turn innovative ideas into physical silicon. This move follows a period of decline for the European chip industry.

While the Chips Act aims to increase the EU share of global semiconductor production to 20% by 2030, the European Court of Auditors stated in a 2025 report that this target is unlikely to be met. Currently, a few companies dominate the market, with the Taiwanese company TSMC producing about seven in every ten chips for other firms. The EU, the US, and Japan are all attempting to build their own capacity to reduce this dependence.