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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 Government Fortifies Economic Resilience Amid Global Uncertainty

Government Commitment to Stability and Growth

Cyprus continues to build a strong and resilient economic foundation to support business planning and investment, as emphasized by Deputy Minister to the President Irene Piki. Representing President Nikos Christodoulides at the 12th Keve Business Leader Awards, Piki underscored that in today’s volatile global landscape, a consistent and reliable economy remains the cornerstone for long‐term strategic planning and confidence-building among businesses.

Strengthening Competitive Edge and Attracting Investment

Piki lauded the role of the Cyprus Chamber of Commerce and Industry (Keve) for its dedication to promoting Cyprus as an attractive investment destination and for supporting the expansion of local businesses. Reflecting on President Christodoulides’s recent address at Keve’s annual general assembly, she outlined the government’s vision for a more competitive Cyprus, which includes expanding market access, improving financing channels, and implementing a streamlined, business-friendly regulatory framework—all pivotal as Cyprus prepares for its EU Council presidency.

Economic Indicators Reflecting Confidence

Despite global uncertainties, Piki highlighted that the Cypriot economy continues to demonstrate resilience: gross domestic product grew by 3.4% in 2024, and forecasts indicate nearly 4% growth in 2025. With inflation remaining among the lowest in the European Union and unemployment dropping below 5%, these indicators affirm steady economic progress. Furthermore, positive ratings from international credit agencies, which have placed Cyprus in the A category with upbeat outlooks, underscore the success of prudent economic policies.

Fiscal Discipline and Strategic Investments

The government’s upcoming 2026 budget, which reinforces fiscal stability with a surplus balance and targets a decline in public debt to 50.9% of GDP, opens the door for strategic policy interventions. Piki noted that investments in energy, digital infrastructure, technology, and green growth are key priorities. Enhanced by the nearing completion of Recovery and Resilience Plan projects, Cyprus is now setting the stage for the next seven-year EU funding framework, ensuring a robust platform for sustained growth with active collaboration from the business community.

Regulatory Reforms and Market Liberalization

Central to the government’s agenda is the imminent tax reform, expected to be finalized on December 22 and implemented on January 1, 2026. This reform is designed to bolster business liquidity and attract new investments. The establishment of the National Enterprise Development Organisation further complements these efforts by offering financing tools and advisory services for small and medium-sized enterprises. Complementing these initiatives, the Cyprus Equity Fund is actively investing in innovative companies, while the Ministry of Energy grant schemes are projected to mobilize €360 million by 2027 to boost competitiveness.

Accelerating Digital Transformation and Energy Reforms

In its pursuit of a modernized business environment, the government is set to introduce a Business Service Centre in central Nicosia in 2025, consolidating licensing procedures to significantly reduce bureaucratic delays. In tandem, the impending launch of a competitive electricity market in October 2025 will empower companies to select their energy suppliers, fostering market competition and fair pricing.

Nurturing Human Capital

Recognizing the importance of talent in driving economic progress, the government is intensifying efforts to attract skilled professionals back to Cyprus. The Minds in Cyprus initiative, a collaboration with Keve and Invest Cyprus, seeks to reverse the talent drain by engaging Cypriots abroad through a series of events scheduled in the United States, United Kingdom, and Greece during 2026.

Commitment to Sustainable Growth

Concluding her address, Deputy Minister Piki congratulated the award recipients for their innovation and resilience, asserting that their achievements are a testament to the dynamism of the Cypriot business community. The government remains steadfast in its commitment to implementing reforms that support a stable, competitive, and sustainable economic future for Cyprus.

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