EU injects €623m to boost semiconductor manufacturing in Germany

Dec. 15, 2025 – 

The European Commission has given the green light to Germany’s plan to inject €623m into two cutting-edge semiconductor manufacturing projects, a move aimed at strengthening Europe’s technological resilience and reducing its dependence on global chip suppliers.

The approved funding will support new facilities operated by GlobalFoundries in Dresden and X-FAB in Erfurt, both of which are expected to play central roles in the EU’s long-term semiconductor strategy outlined in the European Chips Act.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, explained the significance of the investment: “Open foundries are vital for boosting competition and innovation in Europe’s semiconductor sector.

“These two measures will allow the creation of two new facilities that Europe does not yet have, helping to reduce our dependence on foundries outside the EU and strengthening the resilience of Europe’s entire industry.

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