To contribute to this discussion, the Virtual Worlds Association (VWA) is pleased to publish its latest position paper on a potential European XR Chips & Components Pilot Line. Developed through extensive collaboration between VWA members and external experts, the paper explores how Europe can build on its existing strengths in semiconductors, photonics, optics, sensors, manufacturing technologies, and system integration to support future Virtual Worlds, smart glasses, and other emerging digital and industrial applications.
From Ecosystem Mapping to Action
A central element of the Virtual Worlds Partnership roundtable on XR Chips & Components, held on May 21st 2026 in Brussels, was the presentation of this position paper, developed through a series of online and in-person workshops involving industry, research organisations, academia, and public stakeholders.
The position paper maps the European XR chips and components landscape, identifies key strengths and gaps across the ecosystem, and outlines a vision for a future European XR Chips & Components Pilot Line that could build upon and connect existing European capabilities across the semiconductor value chain. It highlights areas where coordinated action could strengthen Europe's technological capabilities, improve ecosystem coordination, and reduce critical dependencies.
Several topics discussed in the position paper nicely match with technology areas referenced in the proposed EU Chips Act 2.0 "Grand Challenges", including Smart Glasses. While the initiative is still taking shape, this coherence illustrates the increasing attention being given to XR-related hardware technologies (e.g. sensing, optics, displays, low-power computing, integration, and smart eyewear) within Europe's broader semiconductor strategy.
Key Messages
The position paper highlights several recurring themes raised by stakeholders throughout the consultation process:
- Strengthening collaboration between industry, research organisations, and academia.
- Developing dedicated XR chips and components that address the unique requirements of future Virtual Worlds and ubiquitous computing systems.
- Improving access to prototyping, testing, validation, and pilot-line facilities.
- Supporting European supply chains and reducing critical technological dependencies.
- Creating stronger links between enabling technologies, chips and components, system integration, and application deployment.
- Ensuring that European innovation can successfully scale from research to market deployment.
- Implementing a distributed pilot-line infrastructure that leverages complementary competencies across multiple European sites.
- Providing low-threshold access for startups and SMEs through mechanisms that address both CAPEX and OPEX requirements.
Several of these recommendations build on existing European investments and competencies, highlighting opportunities to connect and complement ongoing activities in semiconductors, photonics, advanced manufacturing, and pilot-line infrastructures.
Why It Matters
Europe possesses significant strengths in areas that are often less visible than end-user devices, including semiconductor equipment, advanced manufacturing, photonics, microelectronics, optics, and system integration. These capabilities form critical building blocks for future XR devices, smart glasses, and other context-aware computing systems. They are also closely aligned with the broader convergence of XR, AI, sensing, connectivity, and edge computing that is shaping emerging digital and industrial applications.
Rather than simply proposing another initiative, the paper explores how existing European strengths, infrastructures, and stakeholder communities could be better leveraged to address the specific requirements of XR chips and components. Many of the capabilities required for future XR systems already exist within Europe's semiconductor ecosystem, including pilot lines, photonics and microelectronics research infrastructures, manufacturing technologies, and system integration expertise. The challenge is increasingly one of coordination, accessibility, integration, and industrial deployment across the value chain.
As Virtual Worlds evolve into a new generation of digital infrastructures used across work, learning, industry, and everyday life, strengthening Europe's chips and components ecosystem becomes a strategic investment in Europe's ability to shape these systems according to its own values, priorities, and industrial ambitions.
Thanks and recognitions
The Virtual Worlds Association is grateful to its member organizations and the non-members for their for their valuable contributions during these workshops:
Axelera,BTH, CEA-Leti, CSEM, DFKI, EssilorLuxottica, FORTH, Fraunhofer, Joya Team, Infineon, imec, INESC TEC, Konica Minolta Sensing, LusoVu,Microoled, Oliver Achten (individual), Phenix Consulting, Racyics, Varjo and VoxelSensors.
An elite roster of Europe’s heavy hitters in microelectronics, deep tech, advanced optics, and spatial computing. Frequently found collaborating on cutting-edge Horizon Europe initiatives and next-gen tech roadmaps, this coalition spans the entire spectrum from foundational silicon to premium user experiences. Their expertise and perspectives have been essential in developing a shared understanding of the opportunities and challenges facing Europe's XR hardware ecosystem.
Contributor's overview:
- The Research & Deep Tech Powerhouses: Featuring Fraunhofer (with leadership from Dr. Uwe Vogel and Vice-President Dr. Leif Oppermann), imec (led by Dr. Tanguy Coenen), CEA-Leti, and DFKI. Together, these institutes represent the bedrock of European applied research, pioneering everything from advanced micro-displays to artificial intelligence.
- Silicon & Sensor Innovators: Infineon and VoxelSensors bring the essential hardware muscle, driving the semiconductor and 3D-sensing breakthroughs required to power spatial computing.
- The XR, Optics & Display Vanguard: Companies like Varjo (the gold standard in human-eye resolution VR/XR), Microoled, LusoVu, and Konica Minolta Sensing are pushing the boundaries of what we see, while EssilorLuxottica brings its unmatched, world-leading expertise in advanced lens technology.
- Agile Tech & Tactical Consultants: From the specialized hardware of Axelera and Racyics to the tactical vision of Joya Team, CSEM, BTH, INESC TEC, FORTH, and Phenix Consulting (alongside independent expert Oliver Achten), this group provides the critical design, software, and integration capabilities that make complex systems work.
The Virtual Worlds Association warmly thanks the European Commission – DG CONNECT (Communications Networks, Content and Technology – Unit G.2) for their vital support in aligning these efforts.
And a special thank you to Dr. Uwe Vogel, Dr. Tanguy Coenen, and Dr. Leif Oppermann for their leadership and dedication in authoring and shaping this Position Paper.
The discussion continues, and we look forward to engaging with stakeholders across Europe on the next steps for strengthening the foundations of future Virtual Worlds.
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