EU invests €133m in Dutch photonic chip production

The European Union (EU) plans to invest €133 million ($142 million) into pilot production facilities for photonic semiconductors in the Netherlands, according to the Dutch economy ministry. This investment is part of a larger €380 million initiative under the Chips Joint Undertaking, a European public-private partnership. The partnership aims to boost research and development in Europe’s semiconductor industry.

Photonic semiconductors differ from traditional semiconductors by using light instead of electrons for calculations. This technology offers significant advantages in terms of speed and energy efficiency, making it increasingly valuable for use in data centres and automotive applications.

Dutch economy minister Dirk Beljaarts highlighted the importance of this development, calling photonics a “technology of strategic importance”. He emphasised that the EU’s objective is to establish a strong competitive edge, spanning from research and innovation to production and supply chains.

In recent years, industry leaders from major European photonic chip companies have urged the EU to allocate €4.25 billion to strengthen the sector. The goal is to enable Europe to compete effectively with technological giants in Asia and the United States.

In a September report, Mario Draghi, former European Central Bank chief, warned that the EU must invest more rapidly to stay economically competitive. He underscored the importance of robust investments in light of global economic tensions.

Construction of the new Dutch photonic facilities is set to begin in 2025, led by the universities of Eindhoven and Twente and supported by the Dutch knowledge institute TNO. Participating companies will co-invest, fostering collaboration across sectors.