imec CEO Calls for AI Chip Design Focus in Europe’s Chips Act 2.0

Design capability matters because the highest strategic value in semiconductors often sits in architecture, software integration, and system design—not just fabrication. Without strong local designers building AI accelerators and specialized processors, even a region with advanced manufacturing could still depend on foreign technology.

The Limits of the €43 Billion EU Chips Act

The EU launched its €43 billion Chips Act in 2023 to strengthen semiconductor supply chains and increase Europe’s share of global chip production.

According to Vandenameele, the initiative helped stabilize Europe’s semiconductor industry and respond to growing competition from the United States and China. But its focus leaned heavily toward manufacturing subsidies and large fabrication plants.

That strategy addresses supply resilience but leaves a gap in the innovation pipeline. In practical terms, a region can host fabs yet still rely on foreign companies to design the most advanced chips produced there.

Chips Act 2.0, he argues, should therefore help create a stronger European ecosystem of fabless chip companies, especially those focused on AI architectures and accelerators.

Europe Already Has Key Semiconductor Strengths

Despite concerns about falling behind, Europe starts from a strong technological base.

The region hosts some of the most important players in the global semiconductor value chain, including advanced equipment makers and research organizations. For example, the Belgian research hub imec collaborates with hundreds of industry partners and plays a major role in developing next‑generation semiconductor technologies.

Europe is also home to influential semiconductor equipment firms such as ASML and ASM, which supply critical tools used by chip manufacturers worldwide.

These capabilities mean Europe already contributes heavily to the global chip ecosystem—even if it lacks dominant AI chip designers.

Manufacturing Access Still Matters

Design innovation must ultimately connect to production. Vandenameele’s strategy still depends on access to reliable manufacturing capacity.

Europe is beginning to expand that capacity. A notable example is TSMC’s semiconductor facility in Dresden, Germany, built through the European Semiconductor Manufacturing Company (ESMC) joint venture with firms including Bosch, Infineon, and NXP. The project—supported by billions in public funding—is intended to strengthen Europe’s chip manufacturing ecosystem.

Although the Dresden fab is expected to focus largely on automotive and industrial chips, projects like this could help provide regional manufacturing pathways for future European chip designers.

Building the Design Ecosystem: The European Chips Design Platform

Another critical piece of the puzzle is design infrastructure.

Developing chips requires extremely expensive electronic design automation (EDA) software and access to specialized tools. To address this barrier, the EU launched the European Chips Design Platform, a cloud‑based environment that provides startups, SMEs, and research organizations with access to design tools, training, and resources.

Recent partnerships are expanding that effort. Siemens became the first software provider to sign a framework agreement with the EU’s Chips Joint Undertaking, enabling participating companies to use its advanced EDA software under predefined terms.

By lowering the cost of entry for startups and research teams, these initiatives aim to nurture a new generation of European fabless chip companies.

The Bigger Picture: Europe’s AI Hardware Strategy

Taken together, the pieces suggest a potential roadmap for Europe’s next semiconductor strategy:

• Research centers such as imec push advanced semiconductor innovation.
• New design platforms give startups access to tools and expertise.
• Manufacturing investments expand regional production capacity.

What’s still missing are globally competitive AI chip design champions—the kind of companies that define computing platforms.

Vandenameele’s message to policymakers is straightforward: if Europe wants technological sovereignty in artificial intelligence, building fabs alone will not be enough. The region must also create companies capable of designing the chips that power the AI era.