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The global economy is at a turning point where technological sovereignty has ceased to be a theoretical concept and has become the central axis of national security and economic competitiveness. At the heart of this transformation lie semiconductors, devices that constitute the digital heart of all modern technologies.
In Portugal, the publication of Ordinance no. 444/2025/1, on 15 December 2025, marks the operationalisation of an ambitious vision aimed at integrating the country into the European microelectronics elite. This regulation establishes the Incentive and Support System for Research, Development, and Innovation in the Semiconductor Sector.
The importance of this diploma is underscored by the magnitude of the semiconductor market, which is projected to double by the end of this decade, exceeding a market value of one trillion dollars.
The vulnerability of global supply chains was dramatically exposed during the COVID-19 pandemic and subsequent geopolitical tensions. The chip shortage, felt intensely since 2020, resulted in a significant reduction in production in critical sectors, such as automotive, where production in some European Union countries fell by a third. A modern electric vehicle can contain up to 3,500 chips, demonstrating the traditional industry's total dependence on microelectronics. Currently, the European Union holds approximately 10% of the global semiconductor market share, a position that the EU Chips Act aims to double to 20% by 2030.
The National Strategy for Semiconductors emerges as the Portuguese response to this challenge, mobilising and maximising national participation in the European programme. This effort is not limited to physical production but covers the entire product life cycle, from fundamental research and design to advanced packaging and final testing, areas where Portugal already possesses internationally recognised capabilities.
Ordinance no. 444/2025/1 approves the specific regulation that allows companies and R&D system entities to access funds to strengthen the microelectronics industry. This incentive system applies throughout mainland Portugal, and the support takes the form of non-repayable grants, i.e., sunk funds intended to catalyse high-risk and high-technological-value projects. Implementation is the responsibility of the National Innovation Agency (ANI) and the Foundation for Science and Technology (FCT), ensuring articulation between the business and academic worlds.
The incentive system focuses on Pillar 1 of the European Chips Initiative, which aims to strengthen technological capabilities and large-scale innovation across the European Union. Eligible projects must fall within the objectives of developing cutting-edge semiconductor technologies and next-generation quantum technologies.
Entities that can benefit from this support include companies of any nature and under any legal form, as well as Non-Corporate Entities of the Research and Innovation System (ENESII), provided they are integrated into consortia or projects recognised by the European Partnership Chips Joint Undertaking (Chips JU). This partnership is the European mechanism that operationalises funding, with community funding expected to reach 4,175 million euros by 2027, an amount that will be complemented by national and private funds.
The evaluation of applications is based on technical-scientific merit, the degree of innovation, and alignment with the National Strategy. Eligible expenses include investment in tangible and intangible assets, qualified personnel, technical consultancy services, and costs associated with intellectual property protection. A critical point highlighted by the ordinance is that the acquisition of goods and services must be carried out under market conditions and from entities with proven capacity for the purpose, ensuring rigour in the application of public money.
The growth of the semiconductor industry in Portugal faces a structural challenge: the shortage of specialised talent. It is estimated that the European industry will need 15,000 new qualified professionals in the coming years to respond to the investments of the EU Chips Act. In Portugal, although the number of graduates in areas such as electronics, physics, and nanotechnology has grown in the last five years, there is a gap in specific skills for semiconductor design and manufacturing.
The National Strategy for Semiconductors foresees an increased focus on specialisation courses and talent exchange (PhDs and researchers) in critical areas. Portugal's policy of openness to international talent is seen as a positive factor for maintaining and growing R&D operations of global companies like Synopsys, which has engineering centres in Porto and Lisbon.
Cooperation with leading countries, such as South Korea, has been identified as strategic for the Portuguese ecosystem. New partnerships between Portuguese and Korean educational institutions aim at the exchange of technical knowledge and the training of human resources in microelectronics. This capacity-building effort is essential to ensure that the financial investment foreseen in Ordinance no. 444/2025/1 is accompanied by a workforce capable of executing projects at the technological vanguard.
One of the emerging themes discussed at SEMICON Europa 2025 was the role of sustainability in semiconductor production. Sustainable Future Fabs are becoming a priority, with the aim of creating factories that are more efficient from an energy and environmental perspective. This alignment is consistent with Portugal's strategic bet on renewable energies, namely through the Allocation Plan for Offshore Renewable Energies, approved by Council of Ministers Resolution no. 19/2025.
The synergy between the digital transition (driven by chips) and the energy transition is clear. Portugal can use its endogenous resources to fuel a sustainable microelectronics industry, reducing the carbon footprint of components that are, by definition, energy-intensive during their manufacture.
The impact of Ordinance no. 444/2025/1 extends far beyond chip manufacturers. Sectors such as automotive, telecommunications, defence, and health are direct beneficiaries of innovation in microelectronics.
The new law to support R&D&I in the semiconductor sector is not just a subsidy mechanism; it is a catalyst for a new industrial era in Portugal. Ordinance no. 444/2025/1 provides the legal and financial certainty necessary for national and international investors to bet on the country as a centre of excellence in microelectronics.
For companies in the sector, it is recommended to:
With the new legislative framework, the country is better prepared to face the global technological race, ensuring economic resilience and digital sovereignty for the coming decades.
Last update: 22/12/2025
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