The German government wants to make Germany the leading semiconductor manufacturing center in Europe. The goal is to promote future technologies, such as artificial intelligence.
www.gazetaexpress.com, Jul. 17, 2025 –
The federal government wants to consolidate Germany as a European leader in semiconductor production. "We will create incentives to increase the production of semiconductors, devices and precursor products in Germany with at least three new factories," says the new high-tech agenda, which was seen by Reuters news agency.
“We are bringing new semiconductor factories to Germany and consolidating Germany as the leading semiconductor manufacturing center in Europe,” the Federal Ministry for Scientific Research, Technology and Space added in the document. No further details were given. The agenda will be approved by the government in July.
TSMC builds semiconductor factory in Dresden
Microsemiconductors are essential for the energy transition, namely for wind and solar technologies and electric cars, as well as for the development of artificial intelligence (AI). Semiconductors are small but very basic components for many current products. Smart and energy-efficient semiconductors for AI will be developed and produced mainly in Germany. A first pilot project for a supercomputer in vehicles will be launched this year.
The previous German government had already set a target to significantly expand semiconductor production, but it hit a snag when the US company Intel temporarily canceled the construction of a plant in Magdeburg. The US company Wolfspeed also postponed the construction of a planned semiconductor plant in Ensdorf, in the Saarland, in October. On the other hand, the European Semiconductor Manufacturing Company (ESMC), a joint venture formed by TSMC, Bosch and Infineon, has been building a state-of-the-art semiconductor plant in Dresden since the summer.
Federal Minister for Scientific Research Dorothee Bär (CSU) plans to boost research and development of future technologies such as artificial intelligence and quantum computing, as well as their industrial application. According to Reuters, German applications for the European AI Gigafactories will be coordinated with business, science and the federal states by the end of 2025, and the Gigafactories will be operational in 2027.
Ten percent of economic performance
The so-called Gigafactories are particularly powerful institutions that, for example, allow companies to boost product development with the support of AI. In 2025, the first research satellite for quantum communications will be put into operation in Germany for the first time. An “AI robotics booster” will be launched in 2026 with pilot projects for multifunctional robots, and a new research program on “software engineering” will be launched in 2027.
“With an AI offensive, we want to generate 10% of our economic output based on AI by 2030 and make it an important tool in fundamental research areas,” the high-tech strategy states. Germany and Europe are racing to catch up with the United States and China. After a meeting on the Zugspitze mountain between Chancellor Friedrich Merz (CDU) and Bavarian Premier Markus Söder (CSU), both emphasized the importance of the high-tech strategy for the country’s future.
Meanwhile, Minister Bär does not want to focus only on development, but also on the economic application of research results. “Studies estimate a potential for creating added value through AI of between 300 and 400 billion euros per year in Germany and ten times more than this amount worldwide,” the document says in relation to the coming years. Although Germany is experiencing successes in the initial phase of innovation, it is clearly lagging behind in commercialization.
Action plan for a fusion power plant
The high-tech agenda also announces that a long-term strategic action plan for the construction of a fusion power plant in Germany will be presented by the end of 2025. In addition, research into wind and solar technologies will be further promoted, and Germany will become a “leading country for the innovation, production and implementation of stationary battery storage.”
From 2026, so-called "competence clusters" will be created for battery materials, battery production and batteries of this type.
In the field of geothermal energy, Germany will become a global pioneer. The 35-page document states that, according to experts, the global market for green energy technologies will grow from $700 billion in 2023 to more than $2 trillion in 2035.
Civil and military research
However, the high-tech agenda also includes health research, space navigation, and the future integration of civil and military research.
In addition, the renewal of the German research fleet is announced, including research on climate and marine biodiversity. In addition to the support, funding will come from more venture capital and a German fund combining public and private funds. The state is explicitly mentioned as a "core customer", which must purchase new products to make them marketable. /DW