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The funding is part of a total of €380m and falls under the Chips Joint Undertaking.
The European Union is set to invest €133m in production facilities for photonic semiconductors in the Netherlands.
The PIXEurope consortium, which consists of parties from 11 countries including the Netherlands, has been selected for contract negotiations to develop a European pilot plant for photonic chips.
It follows one month after Italy-based start-up Ephos had raised $8.5m to create glass-based photonic chips at scale.
Photonic semiconductors use light rather than electrons to perform calculations, with advantages in speed and power consumption. As a result, this makes them ideal for use in areas such as data centres and also in motoring.
According to the Dutch economy minister, Dirk Beljaarts, “photonics is a technology of strategic importance” for the Netherlands.
“Our aim is to gain a strong European competitive position in this area. From knowledge, innovation, supply to final production, this is necessary for the jobs and income of the future, for solving social challenges and our national security.”
The investment forms part of a total amount of €380m aimed at setting up pilot photonic semiconductor production plants throughout Europe, under the Chips Joint Undertaking, which centres around a European public-private partnership to promote research and development in the semiconductor industry.
Work on the Dutch facilities is expected to start in 2025, and will be led by the universities of Eindhoven and Twente, in association with the Dutch knowledge institute TNO.
Europe has been making a concerted effort over the past few years to be a leader in the semiconductor space. In 2023, the region adopted the EU Chips Act, which aims to increase the EU’s share of global chip production from 10pc to at least 20pc by the end of the decade.
Since the Chips Act came into effect, the EU signed a deal with India to build “robust” supply chains and foster innovation together. The €43bn act is designed to invest in industry players and research labs including the Tyndall National Institute in Cork.
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