Key facts
- The European Commission and EU countries will provide €440 million in grants to chip startups for commercial chip development.
- Another €85 million will fund a European Chips Design Platform, Virkkunen said.
- According to the Commission, European chip design companies account for less than 1% of global revenue in the segment.
- The platform will give startups access to design tools, support services, intellectual property blocks and manufacturing capacity.
The European Union will invest €525 million ($590 million) in chip startups to help them scale up faster, European Commission executive vice-president for tech sovereignty, security and democracy Henna Virkkunen said on November 4, 2026, at the launch of a European Chips Design Platform.
The European Commission and EU countries will provide €440 million in grants to startups to help cover the cost of developing chips for commercial use, while another €85 million will help fund the platform.
"We know that Europe can't strengthen our position in the global semiconductor industry if we don't succeed in chip design," Virkkunen said at the 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 Commission described the investment as part of a push to help Europe catch up with the United States and China. Reuters said the chip industry is booming due to strong demand linked to AI.