Sweden invests 60 million SEK (5.3 million EUR) in ClassIC, a Swedish semiconductor hub. Among other things, ClassIC aims to address the global chip shortage and strengthen the country’s position in the industry. Funded by the Swedish Foundation for Strategic Research, the project is a collaboration between Chalmers University, Lund University, and various industry giants. ClassIC aims to provide energy-optimized chips for Swedish industries and enhance national independence in chip design. This initiative also supports the European Chips Act, a broader effort to achieve semiconductor independence across Europe.
ClassIC: A Swedish initiative for chip independence
ClassIC is a joint effort between Chalmers University, Lund University, Acconeer, Axis Communications, Codasip, Ericsson, Saab and Qamcom, with the support of the companies STMicroelectronics and Cadence to enhance Sweden’s semiconductor capabilities. The project’s primary goal is to develop energy-optimized chips tailored for Swedish industries, while also fostering national independence in chip design. By investing in ClassIC, Sweden is taking a proactive approach to address the global chip shortage and strengthen its position in the semiconductor market.
The Swedish Foundation for Strategic Research funds the initiative with a 60 million SEK (5.3 million EUR) investment, demonstrating the country’s commitment to advancing its semiconductor sector. This project aligns with the European Chips Act, a broader effort to achieve semiconductor independence across Europe.
European Chips Act: Strengthening Europe’s semiconductor ecosystem
The European Chips Act is a three-pillar plan to bolster Europe’s competitiveness and resilience in semiconductor technologies, contributing to the digital and green transition. The first pillar focuses on large-scale technological capacity building and innovation in the EU chips ecosystem. The second pillar aims to improve the EU’s security of supply, and the third pillar establishes a monitoring and crisis response mechanism.
The European Chips Act seeks to address the global semiconductor shortage and strengthen Europe’s technological leadership in the chip industry. According to the Chips Survey, chip demand is expected to double by 2030. The Chips Act will mobilise over €43 billion in public and private investments, targeting a 20% global market share by 2030.
Europe’s struggle for strategic autonomy in chip production
Despite efforts to achieve strategic autonomy in microelectronics and photonic chips, Europe faces challenges due to the limited regional availability of raw materials required for chip production. The continent mines silicon, but other necessary materials such as gallium arsenide (GaAs), indium phosphide (InP), lithium niobate (LiNbO3), and germanium are either synthesized from other materials or sourced globally. Europe’s dependence on imported raw materials highlights the need for a more resilient and self-sufficient semiconductor ecosystem.
Furthermore, EU-based company ASML, a key player in the semiconductor industry, has faced export restrictions imposed by the Dutch government under pressure from the United States. These restrictions limit the export of ASML’s less advanced deep ultraviolet (DUV) machines to China, citing national security concerns. Such geopolitical tensions strain relations between the EU, US, and China, further complicating Europe’s quest for strategic autonomy in the semiconductor sector.
Tensions in the global semiconductor landscape
As global demand for semiconductors continues to rise, countries worldwide, including Japan, are tightening export controls on semiconductor technology. Japan, home to chipmaking equipment producers Nikon and Tokyo Electron, has restricted the overseas sale of chip manufacturing equipment, joining the US and the Netherlands in curbing key technology export to China.
These international export restrictions demonstrate a coordinated effort led by Washington to limit China’s access to advanced semiconductor technologies. China has criticized these measures as “weaponizing economic, trade, and technology issues”. The ongoing tensions in the global semiconductor landscape underline the importance of securing and expanding the EU’s semiconductor production capabilities, with initiatives like Sweden’s ClassIC program and the European Chips Act leading the way.
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