EU Chips Act Meets Dual-Use: Funding Your Semiconductor Company

If you design chips in Europe, you're sitting at the intersection of two massive EU funding programmes. The Chips Act (€43B) aims to bring semiconductor manufacturing back to Europe. The European Defence Fund requires European chips for critical systems. Together, they fund the entire lifecycle of a semiconductor company from design to production.

What the EU needs from European chip companies

• RISC-V processors: open-architecture alternatives to ARM and x86 for critical applications
• Secure processors: hardware with built-in tamper resistance and side-channel protection
• FPGAs: reconfigurable hardware for rapid adaptation to new requirements
• Photonic ICs: high-bandwidth, low-power interconnects for processing systems
• AI accelerators: European-designed chips for edge inference

The funding stack

EU Chips Act: funds design, pilot lines, and manufacturing. Total budget €43B through 2030. Targets the full value chain from design tools to fabrication.

European Defence Fund: funds R&D to adapt semiconductor technology for critical applications. 100% funded, up to €5M for SME-led projects. Specific calls for secure computing and autonomous system processors.

EDIP: procurement contracts for European-made chips. Once your design is ready, European system integrators are required to use European components.

The 65% rule

European critical systems must source at least 65% of components from EU-based suppliers. This regulatory requirement guarantees demand for European semiconductor companies. It's not a preference. It's a rule. Your European chip competes against a smaller field, with guaranteed market access.

If you design semiconductor products in Europe, check your eligibility for both the Chips Act and the European Defence Fund. The combination of R&D grants, manufacturing support, and guaranteed procurement creates a funded path from design to revenue.