Chips Act drives semiconductor and advanced packaging investments across europe
Europe is stepping up investment across the semiconductor value chain, with the European Chips Act spurring more than €80 billion in chip-related projects to date.
While large-scale manufacturing remains a long-term goal, the initiative is accelerating development of pilot lines, design centres, competence hubs, and advanced packaging capabilities, helping Europe reduce dependency on global supply chains.
Flagship investments are taking shape across the continent. In Dresden, the European Semiconductor Manufacturing Company (ESMC) a joint venture including TSMC, Bosch, Infineon, and NXP, is planning a new advanced chip factory with over €10 billion in combined investment.
France is supporting a €2.9 billion STMicroelectronics and GlobalFoundries project, while Italy has green-lit a €2 billion state aid package for STMicroelectronics’ SiC facility in Catania. Austria is also expanding AMS OSRAM’s semiconductor plant with €227 million in public funds.
Smaller EU countries are playing a strategic role in the ecosystem. Malta, for instance, has transformed STMicroelectronics’ plant into the most advanced chip backend manufacturing site in the EU, strengthening its position in assembly and advanced packaging.
Participation in Europe-wide IPCEI projects further supports R&D and innovation in microelectronics, automation, and packaging technologies.
George Gregory, CEO of Malta Enterprise, highlighted the importance of agility and strategic investment: “Smaller jurisdictions can act quickly to attract high-value projects and develop niche capabilities, such as advanced packaging, fueling Europe’s competitiveness in the global semiconductor race.”
With new factories, design hubs, and advanced packaging facilities coming online, Europe is building a comprehensive semiconductor ecosystem that spans design, manufacturing, and packaging critical components for AI, automotive, industrial, and consumer applications.
