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Data Center News > Blog > Innovations > EU injects €623m to boost German semiconductor manufacturing
Innovations

EU injects €623m to boost German semiconductor manufacturing

Last updated: December 12, 2025 5:58 pm
Published December 12, 2025
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The European Fee has given the inexperienced gentle to Germany’s plan to inject €623m into two cutting-edge semiconductor manufacturing tasks, a transfer aimed toward strengthening Europe’s technological resilience and decreasing its dependence on world chip suppliers.

The authorised funding will assist new services operated by GlobalFoundries in Dresden and X-FAB in Erfurt, each of that are anticipated to play central roles within the EU’s long-term semiconductor technique outlined within the European Chips Act.

Teresa Ribera, Govt Vice-President for Clear, Simply and Aggressive Transition, defined the importance of the funding: “Open foundries are very important for reinforcing competitors and innovation in Europe’s semiconductor sector.

“These two measures will enable the creation of two new services that Europe doesn’t but have, serving to to cut back our dependence on foundries outdoors the EU and strengthening the resilience of Europe’s whole business.

GlobalFoundries to construct Europe’s first large-scale dual-use wafer line

A serious share of the funding – €495m – has been allotted to GlobalFoundries for its bold SPRINT mission.

The corporate, identified for producing chips for exterior purchasers moderately than designing its personal, plans to considerably broaden its 300-millimetre wafer capability by upgrading its current Dresden campus.

What units the mission aside is its concentrate on applied sciences initially developed beneath the Vital Tasks of Frequent European Curiosity (IPCEI) for microelectronics.

These applied sciences will now be tailored for dual-use functions, which means they will serve each civilian and defence wants.

This consists of specialised chips designed for aerospace, defence programs and demanding infrastructure – markets that require stringent safety, reliability and totally European-based manufacturing.

See also  Walk-through screening system enhances security at airports nationwide

The Dresden growth is predicted to ship the primary semiconductor manufacturing technique of its form within the EU, marking a significant milestone in Europe’s efforts to construct a safe, autonomous provide chain for high-performance chips.

X-FAB to ascertain Europe’s first MEMS-focused open foundry

The Fee additionally authorised €128m in assist for X-FAB’s Fab4Micro mission in Erfurt. X-FAB plans to assemble a brand new open foundry devoted to micro-electromechanical programs (MEMS), mixed with superior packaging and integration capabilities.

These applied sciences are important in sectors experiencing speedy development, together with automotive innovation, synthetic intelligence {hardware} and medical gadgets.

In contrast to conventional foundries that function on a closed, proprietary foundation, the Erfurt website will probably be an open foundry, providing manufacturing providers to fabless chip firms throughout Europe.

Many of those smaller corporations, together with start-ups and SMEs, at the moment depend on manufacturing companions situated outdoors the EU. X-FAB’s new facility goals to vary that dynamic, offering a aggressive, Europe-based different when industrial operations start in 2029.

The Fee has described the power as first-of-a-kind in Europe, as a result of distinctive mixture of MEMS capabilities and superior packaging applied sciences not beforehand obtainable inside the EU.

Strengthening semiconductor expertise, innovation and provide safety

Each firms have dedicated to a collection of obligations designed to maximise the influence of the general public funding.

They are going to assist innovation pipelines for next-generation semiconductor applied sciences, broaden coaching initiatives to construct Europe’s expert workforce and preserve precedence manufacturing capability throughout potential provide crises, as foreseen within the European Chips Act.

See also  Google announces quantum computing chip breakthrough

GlobalFoundries and X-FAB have additionally agreed to hunt designation as Open EU Foundries, a standing that promotes broad entry for European business.

Though this recognition course of is separate from the state-aid determination, it aligns intently with the EU’s aim of constructing a strong, interconnected semiconductor ecosystem.

Collectively, the 2 tasks mark a major leap ahead for Europe’s semiconductor manufacturing ambitions, reinforcing the bloc’s drive towards better technological sovereignty.

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TAGGED: 623m, boost, German, injects, manufacturing, Semiconductor
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