Germany’s Federal Agency for Breakthrough Innovation (SPRIND) and the Dutch National Agency for Disruptive Innovation (NADI) have introduced the AI-Native Chip Design Challenge. This joint initiative allocates €40 million to accelerate the development of European semiconductor technologies and reduce design timelines from years to weeks.

The program spans 20 months and consists of two stages. In the first phase, running from November 2026 to July 2027, seven selected teams will each receive €2.6 million. The second stage will shortlist three participants, with each team awarded €7 million. Beyond funding, participants will receive technical and commercial mentorship.

NADI was formally established on September 15, 2026, following a recommendation in the Wennink Report, which suggested a budget of €1.5 to 2 billion. The agency operates on an ARPA-style model, with the Dutch government allocating €500 million to support its operations and act as an early customer for new innovations.

The initiative aims to address Europe’s reliance on foreign semiconductor supplies by leveraging AI-driven design methods. The project integrates the Netherlands’ semiconductor sector, anchored by ASML, with Germany’s industrial manufacturing base, including companies like Siemens and Bosch, to foster regional technological sovereignty.