By Foo Yun Chee
BRUSSELS, Nov 4 (Reuters) - The European Union will invest €525 million ($590 million) in chip startups to help them scale up faster, EU tech chief Henna Virkkunen said on Wednesday, part of a push to help Europe catch up with the United States and China.
The European Commission and EU countries will provide €440 million in grants to startups to help them meet the cost of developing chips for commercial use, while another €85 million will help fund a European Chips Design Platform.
"We know that Europe can't strengthen our position in the global semiconductor industry if we don't succeed in chip design," Virkkunen, the European Commission’s executive vice-president for tech sovereignty, security and democracy, said at the platform's launch.
"Fostering a vibrant design ecosystem in turn will create demand for manufacturing facilities and also strengthen the entire value chain in Europe," she said.
According to the Commission, European chip design companies account for less than 1% of global revenue in this segment.
The platform will give startups access to chip design tools, design support services, intellectual property blocks and access to manufacturing capacity.
The chip industry is booming due to strong demand linked to AI.
($1 = 0.8905 euros)
(Reporting by Foo Yun Chee; Editing by Rod Nickel)