Europe Boosts Investment in Advanced Packaging and Chiplet Integration; imec’s FAMES Pilot Line Aims to Mitigate Regional Supply Chain Risks

Astute Group UK

Overview

Europe is significantly increasing investment in advanced packaging and chiplet integration technologies to diversify its semiconductor supply chain and reduce regional procurement risks, shifting focus from pure wafer fabrication to high-value back-end processes. This strategic move is exemplified by imec’s launch of its FAMES pilot line, dedicated to chiplet-based systems for automotive, robotics, and AI, alongside new co-funding opportunities up to €650,000 in Denmark for research and startups in advanced and heterogeneous packaging.

In Depth

Background

The semiconductor industry faces a confluence of challenges, including escalating geopolitical risks, supply chain disruptions exacerbated by pandemics, and surging demand driven by new technologies such as AI. In response, major regions including the U.S. (via the CHIPS Act), Japan, Taiwan, and South Korea are aggressively pursuing the reshoring and diversification of semiconductor manufacturing capabilities. Europe is similarly strengthening its regional semiconductor ecosystem under the European Chips Act, channeling increased funding into packaging infrastructure, prototype production, and workforce development. Advanced packaging, which is becoming an increasingly critical avenue for enhancing chip performance as Moore’s Law approaches its physical limits, is central to Europe’s strategy to reinforce its competitive and strategic position in the global semiconductor landscape.

Key Findings

Europe is strategically accelerating investments in advanced packaging and chiplet integration to bolster the autonomy and resilience of its semiconductor supply chain. This marks a pivotal shift from a historical focus on wafer fabrication towards higher-value, back-end processes, aiming to mitigate regional procurement risks and secure technological leadership. A significant development is the launch of imec’s FAMES (Flexible Assembly & Manufacturing of advanced Electronic Systems) pilot line in Belgium. This state-of-the-art facility is dedicated to advanced process development for efficient, high-performance integration of diverse chiplets, encompassing cutting-edge technologies like 2.5D and 3D stacking, heterogeneous integration, and ultra-fine pitch connections. FAMES targets critical applications in automotive semiconductors, robotics, and AI, while simultaneously supporting in-region prototype manufacturing and fostering a skilled workforce within Europe.

Complementing these efforts, Denmark’s “Lab-to-Fab Accelerators” program, established in June 2026, offers new co-funding opportunities—up to €650,000 per project—for researchers, startups, and innovators in advanced packaging and heterogeneous integration, further stimulating region-wide innovation. These initiatives are poised to significantly enhance Europe’s long-term semiconductor supply chain resilience and competitiveness. By strengthening crucial research infrastructure like FAMES and promoting vibrant startup ecosystems, Europe aims to catalyze new technological advancements, positioning itself to lead in next-generation fields such as AI, autonomous driving, and the Internet of Things (IoT). These concerted efforts hold the potential to transform Europe from predominantly a semiconductor consuming region into a dynamic, technology-driven innovation hub.