European Commission Approves €623 Million German State Aid for Semiconductor Facilities

The European Commission has approved €623 million in German state aid to support the establishment of two new semiconductor manufacturing facilities in Dresden and Erfurt. This funding is split between GlobalFoundries, which will receive €495 million, and X-FAB, which will receive €128 million. These investments align with the objectives of the European Chips Act, aiming to bolster the EU’s technological autonomy and leadership in semiconductor technologies.

GlobalFoundries will use the €495 million to expand its existing Dresden site for its SPRINT project, creating new 300mm wafer manufacturing capacity. The new technologies will cater to aerospace, defence, and critical infrastructure markets, with a unique manufacturing process developed entirely within Europe. This marks the first time these technologies will be produced at scale in the EU.

Similarly, X-FAB will receive €128 million for its Fab4Micro project in Erfurt, which will focus on micro-electromechanical systems (MEMS) combined with innovative packaging processes. This first-of-a-kind facility will support chip manufacturing for automotive, AI, and medical sectors, providing services to European fabless companies.

 

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