Leading European research labs will receive €2.5 billion ($2.72 billion) in funding under the European Chips Act to establish a pilot line for the development and testing of future generations of advanced computer chips, as announced by Belgium’s imec on Wednesday.

The European Union’s €43 billion Chips Act, introduced in 2023, aims to bolster domestic European chipmaking, providing a counterbalance to initiatives by China, the U.S., and other governments to strengthen their own industries following shortages during the COVID pandemic.

Imec, based in Leuven, Belgium, will host the pilot line for sub-2 nanometer chips, facilitating access to chip manufacturing technology for European industry, academia, and start-ups that would otherwise be prohibitively expensive for individual entities to test or utilize in their development efforts.

Major chipmakers like TSMC, Intel, and Samsung are introducing 2 nanometer chips this year and next in commercial fabs, which can cost up to €20 billion. The European R&D line aims to support the development of even more advanced chips in the future and will be equipped with tools from European and global equipment and materials firms.

Imec CEO Luc Van den Hove stated, “The investment will allow us to double volumes and learning speed, accelerating our innovation pace, strengthening the European chip ecosystem, and driving economic growth in Europe.” The NanoIC pilot line is expected to benefit various industries in Europe, including automotive, telecommunications, and healthcare.

Funding for the project includes €1.4 billion from several EU programs and the Flanders government, along with €1.1 billion from industry players like leading equipment maker ASML. Other participating research labs include CEA-Leti of France, Fraunhofer of Germany, VTT of Finland, CSSNT of Romania, and the Tyndall Institute of Ireland.

While the EU plan offers substantial aid, primarily from member states, it has lagged behind funding received in other regions. Only STMicroelectronics has been approved to receive €2.9 billion in aid from France for a plant in Crolles. Intel and TSMC are still awaiting EU approval for billions of euros in German state funding to commence construction of plants in Magdeburg and Dresden this year.