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Portugal is rapidly emerging as a key player in two of the most transformative global industries: semiconductors and artificial intelligence (AI). As the founder of Luso AI -an AI innovation company based in Viseu – I’ve seen firsthand how the convergence of these two domains is unlocking powerful new opportunities across research, industry, and policy.

What makes Portugal’s tech landscape especially exciting is the growing synergy between local academic excellence, targeted public investment, and increasing international interest. Both global corporations and ambitious startups are laying the foundations for the country to become a strategic hub within the AI–semiconductor value chain.

One prominent example is Synopsys, a U.S.-based leader in electronic design automation (EDA), which has established chip design centers in Lisbon and Porto. The company has announced a €25 million investment plan over the next several years, aiming to recruit 200 engineers and upgrade its development labs.

In northern Portugal, PICadvanced, based in Ílhavo near Porto, is pioneering work in photonic integrated circuits – developing cutting-edge transceivers and optical switching solutions for next-generation telecom networks.

Several Portuguese semiconductor startups are also gaining global recognition. SiliconGate focuses on power management IP cores for SoCs; PETsys Electronics designs ASICs and sensors for advanced medical imaging; and Monolithic Power Systems (MPS) has established a new design center in Porto focused on automotive-grade power electronics.

Porto also hosts ASMPT Critical Manufacturing, a facility that develops MES (Manufacturing Execution Systems) tailored to the chip industry. Nearby in Vila do Conde, ATEP Amkor Portugal operates as an OSAT (Outsourced Semiconductor Assembly and Test) plant, recently entering a strategic partnership with GlobalFoundries to help strengthen Europe’s semiconductor supply chain.

Alongside this industrial momentum, multinational tech leaders such as Hitachi Vantara, Microsoft, and Siemens have launched innovation hubs in Portugal- while homegrown AI stars like Feedzai and Defined.ai are scaling their R&D operations in Lisbon and expanding their international reach.

Key Players in Portugal’s AI and Semiconductor Ecosystem

Portugal’s growing reputation in the fields of semiconductors and AI is driven by a diverse set of companies, spanning from multinational giants to high-impact startups and research institutes. Here’s an overview of some of the most influential players contributing to this innovation landscape:

• Synopsys – With operations in Lisbon and Porto, Synopsys offers EDA tools and chip IP solutions, playing a central role in Portugal’s semiconductor design ecosystem.
• PICadvanced – Based in Ílhavo, near Porto, this company specializes in photonic integrated circuits for optical communication, combining research and product development for next-generation networking.
• ASMPT Critical Manufacturing – Operating out of Porto, ASMPT delivers advanced MES (Manufacturing Execution Systems) tailored to the needs of the semiconductor industry.
• ATEP Amkor Portugal – Located in Vila do Conde (greater Porto area), this OSAT facility provides semiconductor packaging and testing services, and has recently entered a strategic partnership with GlobalFoundries to enhance Europe’s chip supply chain capabilities.
• SiliconGate – A Portuguese startup offering analog and mixed-signal power management IP blocks, contributing key technologies to modern SoC design.
• Monolithic Power Systems (MPS) – With a design center in Porto, MPS focuses on power ICs and automotive electronics, reinforcing Portugal’s role in energy-efficient chip design.
• PETsys Electronics – Specializing in ASICs and radiation detection systems, PETsys develops hardware for advanced medical imaging, such as PET scanners, and operates research facilities within Portugal.
• Fraunhofer Portugal AICOS – A Lisbon-based R&D center driving applied AI research in telecom, IoT, and human-machine interaction technologies.
• INL – Iberian Nanotechnology Laboratory – Located in Braga, INL focuses on cutting-edge research in microelectronics and nanotechnology, fostering cross-border scientific collaboration.
• Feedzai – A Lisbon-born AI powerhouse dedicated to fraud detection in financial services, combining machine learning with real-time data processing.
• Defined.ai – Headquartered in Lisbon, Defined.ai offers data platforms for training NLP models and building AI systems, with a strong focus on ethical and scalable model development.

Strategic Collaborations, Initiatives, and National Programs

Portugal is actively engaged in a range of national and international initiatives aimed at advancing both semiconductor development and artificial intelligence. As part of the European Union’s Chips Act and the Chips Joint Undertaking (Chips JU), the country adopted its National Semiconductor Strategy in December 2023, with the goal of strengthening its design, packaging, and fabrication capabilities.

A flagship project under this initiative is POEMS -the Portuguese Competence Centre for Semiconductors – launched in April 2025 at the INL (Iberian Nanotechnology Laboratory) in Braga. Supported by national research funding (FCT) and the European Chips JU, POEMS brings together 16 partners, including universities, research centers, and private sector companies. The center will focus on advanced semiconductor design, chip packaging, and next-generation fabrication technologies.

In the field of AI, the AI Portugal 2030 initiative stands out as a national strategy launched in 2024 by INCoDe.2030 in collaboration with the Ministry of Economy. This strategy seeks to remove adoption barriers and accelerate innovation in artificial intelligence across education, public services, and industry, while fostering international partnerships and research exchange.

One of the most significant announcements came in February 2025, when the FCCN (the advanced computing branch of FCT) revealed that Portugal will play a key role in hosting a European AI Factory in Barcelona. This initiative is linked to the powerful MareNostrum 5 supercomputer and is designed to serve as a support hub for Portuguese startups and companies building AI-driven applications.

Additionally, the Portuguese Parliament established the AI4PA Digital Innovation Hub (DIH) – an advisory program helping public institutions leverage data science and AI tools more effectively. Complementing these efforts are various incentives, including EU programs like Horizon Europe, tax benefits for R&D investments, and technology innovation grants tied to the European Chips Act framework.

Academic and Research Leadership

Portugal’s academic institutions and research centers are at the forefront of semiconductor and AI innovation. Leading universities -including those in Lisbon, Porto, Minho, Coimbra, Aveiro, and NOVA -have established advanced research hubs, graduate programs, and active collaborations with industry partners.

One of the most notable examples is the INL (Iberian Nanotechnology Laboratory) in Braga, home to the POEMS competence center for semiconductors and nanotechnology. This initiative involves a consortium of prominent organizations such as the University of Aveiro (UA), University of Porto (UP), University of Minho (UMinho), INESC, and VORTEX-CoLab.

High-performance computing (HPC) and artificial intelligence are receiving dedicated national support. In September 2023, Portugal inaugurated Deucalion, a supercomputer housed at the University of Minho in Guimarães and operated by the national science foundation (FCT). With a processing capacity of 10^16 FLOPS, Deucalion is a central resource for research and development under the AI-ES program, Portugal’s advanced computing strategy.

Other research centers, such as Fraunhofer Portugal and the Instituto de Telecomunicações, are exploring innovations in multi-core chips, nanoelectronics, and neural networks -bridging hardware and AI architectures.

To further scale talent, several educational initiatives are underway. SARA, a collaborative training program by Synopsys, partners with multiple universities to equip students with hands-on EDA and chip design skills. Programs like “Electronics for All” aim to introduce semiconductor fundamentals in secondary schools, building future talent pipelines from an early age.

Overall, the synergy between academia and industry in Portugal is strong. Researchers and students are actively involved in EU-funded programs like Horizon Europe and EuroHPC, helping to build a specialized workforce for both chip manufacturing and AI innovation.

Investment Trends and Government Incentives

Portugal is attracting growing international interest in its semiconductor and AI sectors. In December 2024, the Minister of Economy reported high-level meetings with Singaporean investment entities such as GIC and Temasek, both expressing interest in funding Portuguese facilities for electronic component and circuit production.

During the same period, the Recovery and Resilience Plan (PRR) – part of the EU’s post-pandemic investment framework -drew attention for funding high-tech innovation and digital skills projects. In May 2024, Synopsys announced a €25 million expansion of its R&D infrastructure in Porto (Maia) and Lisbon, including plans to hire an additional 200 engineers to support growth.

On a national level, tax incentives and R&D support are provided through agencies such as AICEP and ANI. AICEP has publicly described Portugal as “a strong manufacturing base with potential for scaling into full semiconductor fabs,” highlighting the country’s strategic value for global investors.

These developments align with the broader EU goal of doubling Europe’s global semiconductor market share by 2030, reinforcing Portugal’s position as a key node in this emerging landscape.

Technology Convergence: Semiconductors and AI

The relationship between semiconductors and artificial intelligence is deeply intertwined. On one hand, AI is already being leveraged throughout the semiconductor production chain. For instance, Amkor Portugal uses machine learning tools to detect microscopic defects across millions of chips daily, optimizing inspection and quality control in automated manufacturing environments.

On the other hand, AI is also revolutionizing chip design itself. A notable example is Google’s AlphaChip project, which used a reinforcement learning-based neural network to design TPU components with unprecedented speed and efficiency – a technique increasingly adopted by major chipmakers such as MediaTek and others.

Moreover, the development of AI-specific chips – including GPUs, NPUs, and custom ASICs – is enabling the widespread deployment and acceleration of advanced AI models. Hardware platforms from companies like NVIDIA and Graphcore are powering global AI research and commercial applications alike.

This convergence means that investing in Portugal’s semiconductor ecosystem directly supports the AI sector, and vice versa. Advancements in AI fuel better design automation tools, enabling faster, smarter semiconductor production-strengthening Portugal’s competitiveness across both domains.

About the Author

Richard Nir Kabally is the founder of Luso AI, an artificial intelligence innovation company based in Viseu, Portugal. With a background in global tech strategy and digital transformation, he writes regularly about the intersection of AI, semiconductors, and emerging technologies.
Connect with him on LinkedIn.