Germany and the Netherlands are launching a joint effort to advance the design of computer chips built for artificial intelligence, as European countries seek to strengthen their semiconductor capabilities.

The Dutch National Agency for Disruptive Innovation and Germany’s Federal Agency for Breakthrough Innovation will commit €40 million over 20 months to the initiative. Small research teams will use artificial intelligence to speed up the development of chips designed for both training AI models and running them.

The Dutch agency was established this month with €500 million in government funding. Its partnership with Germany brings together the Netherlands’ strong semiconductor equipment ecosystem and Germany’s research and manufacturing expertise.

The programme aims to significantly shorten the chip design process, which can currently take several years. The initiative is part of wider European efforts to develop advanced technology and reduce dependence on expertise from outside the region.