Fondazione Chips.it unveils a plan to rebuild Italy’s semiconductor future

Italy wants to get back to making semiconductors, and not just using them. Fondazione Chips.it, the national body tasked with strengthening Italy’s chip design and microelectronics ecosystem, has presented an ambitious three-year plan (2026–2028) aimed at restoring the country’s role as a producer of knowledge, innovation, and advanced technology in a sector that underpins the modern economy.

Based in Pavia, where it was established two years ago, the foundation plans to invest around €60 million over the next three years to boost cutting-edge research, build state-of-the-art testing and verification infrastructure for industry, and address Italy’s growing shortage of skilled microelectronics talent. Semiconductors are everywhere, even in eyewear. It is no coincidence that, alongside the presentation of its new plan, Fondazione Chips.it announced a strategic collaboration with EssilorLuxottica, the global eyewear champion that is transforming traditional glasses into smart devices. These new-generation products integrate cameras, audio, connectivity and artificial intelligence into frames and temples, highlighting how advanced chip design has become central even in unexpected sectors. The partnership underscores the foundation’s broader mission: to reconnect Italy’s industrial strengths with advanced electronics and help the country regain momentum in disciplines that have been neglected for too long. According to Ernst & Young data, Italy counted around 1,900 companies in the semiconductor value chain in 2022, employing 36,000 people and generating €7.4 billion in revenue. Yet, like much of Europe, Italy remains strong mainly in traditional segments such as microcontrollers and signal processors, while it lags far behind in the most advanced chips that are driving the global AI boom.

As the global semiconductor market heads toward an estimated $1 trillion in annual output by 2030, Europe’s market share in its core segments is shrinking at double-digit rates. In response, the European Commission has launched the EU Chips Act, while the Italian government has allocated €4.15 billion to the sector through the National Microelectronics Fund—€2 billion of which has already been committed to projects by STMicroelectronics and Silicon Box. Fondazione Chips.it positions itself as a key pillar of this recovery strategy, working to align universities, research centres, large companies, startups and public institutions into a more cohesive ecosystem. The foundation is backed by Italy’s Ministry of Enterprises and Made in Italy (MIMIT) and the Ministry of Universities and Research (MUR). It is chaired by Alberto Sangiovanni Vincentelli, a global authority in chip design and co-founder of US giants Cadence and Synopsys, with Carlo Reita as scientific director. Currently employing 47 people, Fondazione Chips.it plans to double its staff next year and reach around 150 employees by 2028. Beyond EssilorLuxottica, its industrial partners include Leonardo, Stellantis and STMicroelectronics.

Financially, the foundation received €32.5 million in November 2024 for institutional activities and €5.8 million for operating costs. Over the next three years it will receive €20 million per year for research and €3.8 million annually to support operations.

Key investments include: Chip design infrastructure (€5 million); Verification and testing (€20 million); Assembly and advanced packaging: A packaging and assembly line will be built in Pavia, starting with a €3 million core in 2026, expanding in 2027 (€3 million) and 2028 (€7 million); Specialized laboratories: Two major test labs are planned for 2026—a €7 million radio-frequency lab covering the 100–300 GHz spectrum, and a €13 million lab for digital and analogue circuits, with further expansions budgeted for 2027. Over the next three years, research teams will focus on six main areas: Digital chip design, Analog and mixed-signal design, Semiconductors for space and terrestrial telecommunications, Power electronics, Advanced packaging technologies, Design and test infrastructures, European projects and strategic autonomy.

Fondazione Chips.it is already involved in several European initiatives. Since January it has participated in the EU Chip Design Platform, coordinated by Belgium, to support open hardware and SMEs. It is also part of a CNR-led pilot line for energy-efficient wide-bandgap semiconductors. From next January, it will act as Italy’s National Competence Center under the European strategy. The foundation is also a partner in two major EU research projects: Chassis, led by Bosch, focused on high-performance computing integration in automotive systems, and Turandot, coordinated by NXP, targeting processors for automotive applications. These efforts reflect a broader geopolitical reality. For Europe, semiconductors are a strategic asset, and dependence on external suppliers is increasingly seen as a risk, particularly after recent trade tensions and export restrictions affecting the automotive industry. Rather than competing head-on with global giants in ultra-advanced segments such as sub-3-nanometer chips or GPUs, Fondazione Chips.it aims to concentrate Italy’s investments where the country can realistically excel: industrial applications, open hardware, energy efficiency and system-level innovation.

The challenge is significant, but the foundation plans to work closely with other national centres of excellence, including the Italian Institute of Technology in Genoa and the AI4Industry foundation in Turin. The logic is clear: chips as the foundation, artificial intelligence as the productivity engine, and robotics as the next frontier of global competition.