EU Commits €133 Million to Dutch Photonic Chip Production in Major Semiconductor Push

The European Union (EU) is set to channel €133 million ($142 million) into pilot production facilities for photonic semiconductors in the Netherlands, according to the Dutch economy ministry. This investment is a key component of a broader €380 million fund designated to boost photonic semiconductor production across Europe, under the Chips Joint Undertaking initiative. This EU-backed public-private partnership is dedicated to advancing research and innovation in the continent’s semiconductor sector, which has become increasingly competitive on the global stage.

Photonic semiconductors represent a breakthrough in computing, using light instead of electrons for processing tasks, which enhances both speed and energy efficiency. These qualities make photonics especially valuable for high-demand applications, such as data centers and the automotive industry, according to Reuters.

“Photonics is a technology of strategic importance,” stated Dutch economy minister Dirk Beljaarts. He emphasized that Europe’s ambition is to establish a strong competitive edge in this domain, covering everything “from knowledge, innovation, and supply chains to end products.”

The European semiconductor industry, particularly photonics, has faced calls for increased funding to compete globally. Last year, leading executives from Europe’s major photonic chip companies urged the EU to provide €4.25 billion in support to help the region contend with competition from Asia and the United States. This appeal for significant investment has only grown louder amid escalating global economic tensions, as regions strive to strengthen their domestic tech industries.

In response to these pressures, the European Commission recently tasked former European Central Bank chief Mario Draghi with analyzing the EU’s strategy for sustaining competitiveness in an increasingly digital and eco-focused global economy. In his report released in September, Draghi advised the EU to accelerate and expand its investments to keep pace with the United States and China.

According to the Dutch economy ministry, preparations for the Dutch photonic facilities are scheduled to begin in 2025, in collaboration with Eindhoven and Twente universities, alongside Dutch research institute TNO. Private companies involved in the production will also contribute financially to the project, creating a collaborative ecosystem aimed at reinforcing Europe’s position in the photonic sector.

Source: Reuters