The Bottom Line: Brussels plans with Imec and SPRIND to build European AI chip manufacturing as part of Chips Act 2.0 to reduce dependence on US and Asian manufacturers.
The European Commission is negotiating with Belgian research center Imec and German innovation agency SPRIND over the development of its own semiconductor manufacturing for AI chips. The project is set to become part of Chips Act 2.0, which will be presented next week.
The European Commission is working on early plans for a state-of-the-art semiconductor factory to reduce the continent’s dependence on US and Asian manufacturers. Participating in the talks are Belgian R&D center Imec and German innovation agency SPRIND. The project carries the internal working title “EU-made Advanced Semiconductor Manufacturing”.
The background is unease in Brussels over Europe’s lag in the core technology of the AI economy. The European Union relies on chips manufactured in the USA or in Taiwan and South Korea. Own local manufacturing capacity would help Europe control more of the AI supply chain, capture more economic value, and protect itself against geopolitical shocks. Imec already received €700 million in EU funding in 2023 to develop two-nanometer chips. One discussed scenario envisions the construction of a one-nanometer factory in Germany by 2035.
The Commission is placing the project under the umbrella of Chips Act 2.0, which will be published next week. The revised plan aims to encourage private investors to finance large-scale “strategic projects” for “sovereign and advanced manufacturing, design of advanced chips, and supply chain resilience”. The planned factory is not included in the legislative proposal currently available, but could later be proposed as a strategic project.
Discussions are still at an early stage. No decision has been made on support, location, or financing. Europe’s undertaking is under great pressure: a previous attempt failed when Intel’s planned megafactory in Germany collapsed in 2024 due to financial problems at the US company. TSMC, Samsung, and Intel currently dominate global chip manufacturing. ASML CEO Christophe Fouquet recently warned publicly against such a project.
Source: www.politico.eu · Published 28 May 2026
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