EUR 623 million State aid for two new semiconductor manufacturing facilities in Germany greenlighted
The Commission has approved EUR 623 million in State aid to support the development of two first-of-a-kind semiconductor manufacturing facilities in Dresden and Erfurt, contributing to the EU’s strategic autonomy and technological leadership under the European Chips Act.
Germany will provide EUR 495 million to GlobalFoundries to expand 300 mm wafer production in Dresden for advanced dual-use technologies developed under the IPCEI Microelectronics project, and EUR 128 million to X-FAB to build a new open foundry in Erfurt combining MEMS capabilities with innovative packaging and integration processes for automotive, AI and medical applications.
The Commission approved the measures under Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU’), and the European Chips Act Communication, concluding that they enable first-of-a-kind semiconductor facilities in Europe, have a clear incentive effect, and are necessary, appropriate and proportionate to address proven funding gaps. Both beneficiaries will share excess profits with Germany and comply with obligations under the EU Chips Act, including priority-rated orders in a supply crisis.
For more information, see the Commission’s PR.