00:01Europe is hoping it can spur a new generation of European chip design companies with a 525
00:08million euros bet on startups. The European Commission announced the European chip design
00:14platform which aims to offer early-stage firms design tools, access to intellectual property
00:20and manufacturing and grants of up to 16 million euros. Chip design is a core stage of the
00:26semiconductor value chain and a place where much of the industry's innovation emerges. Yet European
00:32firms currently generate less than 1% of global revenues in this segment, the Commission said.
00:38EU officials say this undermines the bloc's wider chip strategy. New manufacturing capacity in Europe
00:45will only be sustainable if there is enough demand for it, and much of that demand has to come from
00:50European designers. Officials say the stakes go beyond startups. New European factories will only
00:57pay off if European designers supply the demand. The CHIPS Act was designed to lift the EU to a 20
01:04%
01:04share of global semiconductor production by 2030, up from a base of around 9% in 2020. But in a
01:122025 report,
01:13the European court of auditors concluded that the target is very unlikely to be met. Meanwhile,
01:20chip capacity is concentrated to just a handful of companies laid by Taiwan and South Korea.
