Patrick Vandenameele, the incoming chief executive of imec, said Europe must concentrate on creating its own AI chip design companies as the European Union readies a second iteration of its chip policy.
Vandenameele, who assumed the role of CEO in April, made the remarks ahead of the European Commission's planned unveiling of Chips Act 2.0 on May 27. He credited Europe’s first Chips Act, a 43 billion euro ($50 billion) program launched in 2023, with helping to steady the region’s semiconductor industry amid competition from the United States and China.
But he signaled that those measures were not sufficient on their own. "If we do not get the Nvidias (NASDAQ:NVDA) of the future, if we don’t get any of those in Europe, that will be a problem," Vandenameele said, stressing the need for a stronger AI chip design ecosystem within Europe.
The European Commission intends to fold its revised chip strategy into a wider tech sovereignty package. The first Chips Act did not meet its ambitions to pull in advanced manufacturing capacity or to double the bloc’s share of the global semiconductor market to 20% by 2030, according to the information provided.
The AI chip design sector continues to be dominated by U.S. firms, a point Vandenameele’s comments underline as policymakers consider new measures. His call frames the forthcoming policy update as an opportunity to target the design layer of the AI chip value chain, rather than relying solely on funding or manufacturing incentives.
Summary
Europe’s lead research centre imec is urging policymakers to push beyond the initial Chips Act and support the emergence of homegrown AI chip designers. Vandenameele highlighted the stabilizing impact of the 43 billion euro 2023 package but warned that the region remains dependent on U.S. design firms unless additional steps are taken.
Key points
- Imec’s new CEO, Patrick Vandenameele, advocates for a Europe-based AI chip design ecosystem to reduce reliance on U.S. companies.
- The original 43 billion euro Chips Act launched in 2023 helped stabilize Europe’s semiconductor industry versus U.S. and Chinese competition.
- The European Commission plans to announce Chips Act 2.0 on May 27 as part of a broader tech sovereignty package; the first Act fell short of aims to attract advanced manufacturing and double market share to 20% by 2030.
Risks and uncertainties
- Europe may fail to develop large-scale AI chip design firms comparable to leading U.S. companies, maintaining reliance on foreign designs - affecting the semiconductor and broader technology sectors.
- The initial Chips Act did not achieve its stated goals of attracting advanced manufacturing and boosting market share, indicating uncertainty about whether further policy measures will deliver the intended industrial outcomes - impacting manufacturing investment and market expectations.
- Continued dominance of U.S. firms in AI chip design could limit Europe's options for technological autonomy even after policy revisions - a strategic risk for policymakers and industry stakeholders.