Europe has taken another step forward in the global semiconductor race with the official inauguration of a €2.5 billion (approximately $2.95 billion) "Nano IC" pilot line by Belgian research institute IMEC this Monday. Funded under the EU Chips Act, the facility's core mission is the research and development of cutting-edge semiconductor technology.

While Europe is home to several leading chip manufacturing equipment companies, including Dutch lithography giant ASML Holding NV, it holds a minimal share in the design and production of the most advanced chips. During the current industry boom driven by artificial intelligence, European companies have largely remained on the sidelines, with American and Asian firms becoming the primary beneficiaries.

The newly opened Nano IC pilot line aims to address part of this gap. Instead of building full-scale commercial chip factories, Europe is betting on a collaborative R&D model. Companies and research institutions will first use this platform to develop process steps and integration technologies for sub-2-nanometer nodes and create prototypes before deciding whether to invest billions in mass production.

The EU Chips Act, introduced in 2022, has a core objective of doubling the EU's share of global semiconductor production to 20% by 2030. The Nano IC pilot line will be equipped with ASML Holding NV's most advanced High-NA EUV lithography machine, along with a full suite of supporting equipment.

Key Data €2.5 Billion This is the total investment in the Nano IC pilot line. €1.4 billion comes from public funds provided by the EU Chips Joint Undertaking and the Flemish government, while €1.1 billion constitutes private capital from leading industry companies, with ASML Holding NV being the largest private investor.

Key Statements ASML Holding NV CEO Christophe Fouquet stated in a declaration: "We are deeply proud and honored that this pilot line is located in the heart of Europe. It will help Europe play a more critical role in the global semiconductor ecosystem."

IMEC CEO Luc Van den hove said: "In the age of AI, the Nano IC pilot line will be a crucial force in strengthening Europe's industrial base."

Next Steps IMEC anticipates that the High-NA EUV lithography machine from ASML Holding NV will be delivered this March.