The European Union has committed 133 million euros ($142 million) toward developing photonic semiconductor pilot production facilities in the Netherlands, part of a 380-million-euro effort under the Chips Joint Undertaking to foster European leadership in semiconductor technology. Photonic chips, which use light rather than electrons, offer speed and energy efficiency advantages, benefiting data centers, automotive tech, and beyond. Dutch economy minister Dirk Beljaarts emphasized the strategic importance of photonics for Europe’s competitive edge, as Europe aims to secure a robust position in global supply chains. The investment also aligns with former ECB chief Mario Draghi’s recommendation for the EU to rapidly expand investments to stay competitive with the U.S. and China, with the new facilities expected to commence in 2025 through collaborations led by Eindhoven and Twente universities, along with Dutch knowledge institute TNO.

My Take

The EU’s investment in photonic chip production marks a crucial step toward advancing Europe’s semiconductor capabilities. This support for photonics could position Europe as a leader in the next-gen chip sector, especially as demand for energy-efficient tech grows globally. However, with the EU’s total funding still below the 4.25 billion euros industry leaders have called for, continued investment will be critical to ensure competitive resilience against Asia and the U.S. Europe’s collaborative approach with universities and private sectors is a promising model for sustainable tech advancement.

#Photonics #Semiconductors #EUInvestments #TechInnovation #ChipsAct

Link to article:

https://www.reuters.com/world/europe/eu-invests-142-mln-dutch-photonic-chip-plants-2024-11-11/

Credit: Reuters