Brainport Rising — Special: The European Chip Stack
From fragmented excellence to an emerging system
For decades, Europe’s greatest export was not chips. It was intellectual property. The continent designed breakthroughs, filed patents and pushed the boundaries of science — only to see others industrialise, scale and capture the value. Europe became the world’s R&D department, while markets and margins formed elsewhere.
That pattern is now being challenged. Not by a single company. But by something more subtle — and potentially more powerful. A system is beginning to emerge.
From Fragmentation to Pattern
At first glance, Europe’s semiconductor landscape still appears fragmented. Different countries. Different specialisations. Different companies solving different problems. But look closer and a pattern becomes visible.
Across the Netherlands and Germany, a set of companies is not competing — but complementing. Each addresses a different constraint in modern computing. Each operates at a different layer. And together, they begin to form the outline of something Europe has long lacked. Not a champion. But a stack.
The Stack as an Organism
The concept of a “stack” is not new in technology. But in this context, it takes on a different meaning. This is not a linear value chain. It is a system — closer to an organism than a production line.
- Axelera AI provides the compute layer — the “brain” that enables decision-making at the edge
- Innatera develops ultra-efficient sensing — the “nervous system” that reacts to the world in real time
- Smart Photonics builds the physical substrate — where light becomes infrastructure
- Black Semiconductor connects it all — enabling chips to communicate as a unified system
Individually, each solves a problem. Collectively, they form something more profound: a prototype of digital sovereignty Because none of these layers stands alone.
Compute without connectivity stalls. Sensing without processing is irrelevant. Manufacturing without application is idle capacity. The stack only works as a whole.
From Value Chain to Architecture
The traditional way of understanding semiconductors is through a value chain: design → manufacturing → integration. But that model is no longer sufficient.
Modern computing is not linear. It is layered. Performance emerges not from individual components, but from how they interact.
The future of semiconductors is not about better parts. It is about better integration. This is where the European approach begins to diverge.
A Different Model of Power
In the United States, technological power is often concentrated.
Large, vertically integrated companies dominate entire domains. Scale, capital and control converge into singular entities.
Europe is taking a different path. Not by design alone — but increasingly by necessity.
The US builds cathedrals — singular, dominant, imposing.
Europe is building a bazaar — distributed, interconnected, and complex.
This model is harder to coordinate. But potentially harder to disrupt. Power, in this system, is not located in one company. It is embedded in the architecture.
The Industrial Turning Point
For decades, Europe’s weakness was not innovation. It was industrialisation. Ideas moved faster than factories. Research outpaced production. The continent invented — but did not scale.
That dynamic is beginning to shift.
With investments in photonics, pilot lines and advanced manufacturing, the distance between lab and fab is narrowing. The emergence of production capabilities alongside design expertise signals something new.
As Johan Feenstra notes:
“Europe must show courage and act decisively. Otherwise, we will simply lose the game.”
Johan Feenstra
CEO, Smart Photonics
This is not about incremental progress. It is about crossing a threshold. From research to industry.
A System in Formation
And yet, this system is not complete. It is still fragile.
- the companies remain independent
- integration is limited
- capital is uneven
- ownership is uncertain
What exists today is not a finished structure. It is a system in formation. One that could evolve into a coherent European semiconductor industry — or dissolve into familiar patterns of fragmentation and acquisition.
The Architecture of Power
What makes this moment significant is not just the technology. It is what the technology enables.
In a world where AI systems scale across thousands of chips, where performance depends on connectivity, efficiency and integration, power shifts.
Not to the fastest processor. Not to the largest factory. But to those who define how systems work together.
As Fabrizio Del Maffeo puts it:
“The future of intelligence does not live in the cloud, but at the edge.”
Fabrizio Del Maffeo
CEO, Axelera AI
The implication is broader than it appears. If Europe can define the architecture of this stack, it does not need to dominate every layer. It needs to shape how they connect.
If We Have the Stack — Who Holds the Keys?
This is where the question becomes unavoidable. If Europe is indeed building a chip stack, then technology is only part of the equation. The other part is ownership.
Who funds it.
Who controls it.
Who decides its direction.
Because without ownership, sovereignty remains incomplete. This is not a technical question. It is a financial and strategic one.
Beyond the Breakthrough
The pieces are here.
Compute.
Sensing.
Manufacturing.
Connectivity.
The stack is no longer theoretical. What remains uncertain is whether Europe can recognise it — and act accordingly. Because the greatest risk is not technological failure. It is failing to see what is already emerging.
Conclusion
Europe does not need another champion to win the chip race. It may already be building something more complex — and potentially more powerful. A system.
One that is harder to build. Harder to coordinate. But, if completed, far harder to ignore.
The stack exists. What remains is the question of whether Europe has the will to own it.
This article is part of the Brainport Rising series. In the next chapter, we examine the missing piece of this emerging system: if Europe is building the stack, who will finance — and ultimately control it?
Caption
A conceptual view of the emerging European chip stack — where compute, sensing, manufacturing and connectivity converge into a new industrial architecture.
Credit
Visual: Altair Media Europe
