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EU Invests In Revolutionary Microchip Technology For AI and Space Exploration

The EU is ramping up investment in cutting-edge microchip technology, crucial for AI, space exploration, and beyond. As demand for smaller, more powerful chips grows, Europe is backing innovative research and production to secure its future in tech.

On June 1, 2024, China’s Chang’e 6 mission successfully landed on the Moon to collect samples, and Edouard Lepape, managing director of NanoXplore, a French firm specializing in microchips for space, proudly highlighted his company’s contribution. “One of our components is currently on the Moon,” he said, referring to a specialized chip used in aerospace.

Lepape leads DUROC, an EU-funded initiative designed to advance microchip tech for space, involving experts from Germany, France, Greece, and Sweden. Partners like Airbus and Thales are also on board, pushing European chip technology to new heights. Space chips are distinct from commercial devices, and designed to withstand extreme radiation, cold temperatures, and vibrations. “You can’t just use ordinary chips in space,” Lepape explained, noting the harsh environment that requires chips to be ultra-durable and energy-efficient.

Microchips, which power everything from smartphones to supercomputers, have been shrinking and becoming more powerful since the first integrated circuit in 1959. Today’s microchips contain billions of transistors and are essential in everything from AI to everyday gadgets. The industry constantly pushes for smaller, faster chips, with each generation offering improved power efficiency and performance. In 2019, the 7nm chip was introduced, followed by the more advanced 3nm chips in the latest smartphones.

“The demand for smaller transistors is driven by the need for smarter devices like smartphones and AI,” said Marc Assinck, spokesperson for ASML, a company specializing in microchip lithography. ASML’s SeNaTe consortium helped develop 7nm technology, which paved the way for today’s 3nm chips.

However, Europe’s share of the global chip market has dwindled to just 10%, with Asia dominating production. To regain competitiveness, the EU launched the European Chips Act, aiming to double Europe’s semiconductor market share to 20% by 2030, with a €43 billion investment in R&D and manufacturing.

In 2024, TSMC, Taiwan’s largest chipmaker, began construction of its first European plant in Dresden, Germany, in partnership with Bosch, Infineon, and NXP. Production is set to begin in 2027. Meanwhile, Intel is also building a massive facility in Germany, expected to be Europe’s largest semiconductor plant.

Both TSMC and Intel are among the few capable of producing cutting-edge 3nm chips, alongside South Korea’s Samsung. As Europe aims to boost its chip manufacturing capacity, the focus is not just on consumer electronics but also on the unique needs of space tech.

Space-bound chips, unlike those used in smartphones, must be able to process large amounts of data while consuming minimal power and resisting radiation. Currently, space chips use 65nm and 28nm technology, but NanoXplore and DUROC are working to bring space chips to 7nm. “If we achieve 7nm for space, we’ll be a major player,” said Lepape.

With support from the EU’s Horizon Programme and initiatives like Space R&I, Europe hopes to stay competitive in the global chip race, ensuring technological sovereignty for AI and other critical industries.

Research for this article was funded by the EU’s Horizon Programme, and the opinions shared are those of the interviewees, not necessarily the European Commission.

Cyprus Services Sector Shows Robust Performance In 2025 As Tourism, Digital Innovation, And Shipping Surge

The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.

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