European funding for electronics and semiconductors: the Chips Act, the Chips JU and the IPCEI on microelectronics

Editorial team artemis-ju.eu · Updated 27 October 2026

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European funding for electronics and semiconductors rests on three building blocks: the European Chips Act as the legal framework, the Chips Joint Undertaking (Chips JU) as the funding body for research, development and pilot lines, and Important Projects of Common European Interest (IPCEI) as state aid granted by Member States. Companies usually take part through collaborative projects in Chips JU calls on the EU Funding & Tenders Portal. In many of these calls part of the grant comes from national budgets; in Germany the Federal Ministry of Research, Technology and Space (BMFTR) is responsible.

The European Chips Act

The Chips Act is Regulation (EU) 2023/1781 of 13 September 2023. It aims to strengthen the semiconductor sector in the EU and improve security of supply, and is organised in three pillars:

Pillar Content
1: Chips for Europe Initiative research, development, pilot lines, design capacity, competence centres, access to finance
2: Security of supply framework for first-of-a-kind production facilities in the EU, such as integrated production facilities and open EU foundries
3: Monitoring and crisis response supply chain monitoring, coordination between Member States and the Commission, crisis instruments

Much of the Chips for Europe Initiative is implemented by the Chips JU.

The Chips Joint Undertaking and its predecessors

The Chips JU is a partnership between the European Union, participating states and private members from industry. Its legal basis is Council Regulation (EU) 2023/1782, which amended Regulation (EU) 2021/2085. Its calls are financed among others from Horizon Europe and the Digital Europe Programme, guided by a multi-annual work programme for 2023-2027. Participating states include several non-EU countries.

Period Body Legal basis
from 2014 ECSEL Joint Undertaking (Electronic Components and Systems for European Leadership) Regulation (EU) No 561/2014
from 2021 Key Digital Technologies Joint Undertaking (KDT JU) Regulation (EU) 2021/2085
from 2023 Chips Joint Undertaking (Chips JU) Regulation (EU) 2023/1782

ECSEL was created in 2014 by merging the two earlier joint undertakings ENIAC and ARTEMIS.

Types of calls

  1. Research and innovation projects with national co-funding: the EU funds part of the costs and participating states fund their national partners on top. The Chips JU publishes an overview of which state supports which call and with what budget.
  2. Calls without national co-funding: funding comes entirely from EU sources.
  3. Chips for Europe actions: for example pilot lines, a European design platform and competence centres. These target large research organisations and consortia, but also give smaller companies access to infrastructure and expertise.

National availability differs by call and country, so always check the current Chips JU budget overview and your country’s guidance.

How companies in Germany take part

  1. Find a call on the Funding & Tenders Portal; see reading funding calls.
  2. Build a consortium of industry and research partners across countries; see building a consortium.
  3. Submit the EU proposal through the portal.
  4. Apply nationally: according to the German federal funding database (Förderdatenbank), the national procedure has two stages. The BMFTR assesses and prioritises proposals from a German perspective in parallel to the EU procedure, then a formal application follows via the easy-Online system. The contact is the project management agency VDI/VDE Innovation + Technik GmbH. Eligible are commercial companies, universities and research organisations.

The BMFTR publishes dates and the current application status for German participants.

IPCEI on Microelectronics and Communication Technologies

IPCEIs are state aid measures by Member States, approved by the European Commission under EU state aid rules. They are not open calls but bundle pre-selected projects.

On 8 June 2023 the Commission approved the IPCEI on Microelectronics and Communication Technologies (IPCEI ME/CT). According to the Commission, 14 Member States including Germany provide up to EUR 8.1 billion in public funding, expected to unlock a further EUR 13.7 billion in private investment. 56 companies, including SMEs and start-ups, carry out 68 projects across the value chain, from materials and tools to chip design and manufacturing. It was the second IPCEI in microelectronics. Joining an approved IPCEI later is generally not possible; new projects require new selection procedures.

Complementary national support

For in-house R&D, companies taxable in Germany can also use the research allowance (Forschungszulage), provided the same costs are not funded twice. More programmes are listed under innovation funding, and specialised grant consultants can help.

Sources

As of October 2026. This guide does not replace tax or legal advice; the call conditions and grant agreement, or the funding body’s guideline and decision, are binding.

Frequently asked questions

Can a mid-sized electronics company take part in Chips JU calls?

Yes. Chips JU calls are open to companies of all sizes, universities and research organisations. Most projects are multinational consortia; the conditions are set in each call.

Why do German participants need a second application?

In calls with national co-funding, part of the grant comes from the participating state. In Germany the BMFTR assesses proposals in parallel to the EU procedure, followed by a formal application via easy-Online, usually in German.

Can my company still join the IPCEI ME/CT?

The IPCEI ME/CT was approved with a fixed set of companies and projects. Any future IPCEI in semiconductors would require new selection procedures by Member States and Commission approval.

Is there tax-based support for chip R&D in Germany?

Yes. Companies taxable in Germany can claim the research allowance (Forschungszulage) for eligible in-house R&D, provided the same costs are not funded twice.