The European Commission has given the green light to Germany’s plan to spend 623 million euros on two cutting-edge semiconductor manufacturing projects. This is 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 a central role in the EU’s long-term semiconductor strategy as outlined in the European Chip Act.
Teresa Rivera, Executive Vice President, Clean, Fair and Competitive Transition, explained the importance of this investment:
“These two measures will enable the creation of two new facilities not yet available in Europe, which will help reduce dependence on foundries outside the EU and strengthen the resilience of the European industry as a whole.”
GlobalFoundries to build Europe’s first large-scale dual-use wafer line
The bulk of the investment – €495 million – was allocated to GlobalFoundries for its ambitious SPRINT project.
The company, known for producing chips for external customers rather than designing them in-house, plans to significantly expand its 300mm wafer production capacity by upgrading its existing Dresden campus.
A distinctive feature of this project is its focus on technologies originally developed under the Important European Project of Common Interest for Microelectronics (IPCEI).
These technologies will be adapted for dual-use applications in the future, meaning they can serve both civil and defense needs.
This includes specialized chips designed for aerospace and defense systems and critical infrastructure, markets that require stringent security, reliability and fully European-based production.
The Dresden expansion is expected to be the first semiconductor manufacturing process of its kind in the EU and marks a major milestone in Europe’s efforts to create a secure and autonomous supply chain for high-performance chips.
X-FAB establishes Europe’s first open foundry specializing in MEMS
The Commission also approved €128 million in support for X-FAB’s Fab4Micro project in Erfurt. X-FAB plans to build a new open foundry dedicated to microelectromechanical systems (MEMS), combining advanced packaging and integration capabilities.
These technologies are essential in rapidly growing sectors such as automotive innovation, artificial intelligence hardware, and medical devices.
Unlike traditional foundries that operate on a closed, proprietary basis, the Erfurt location will be an open foundry, providing manufacturing services to fabless chip companies across Europe.
Many of these small businesses, including start-ups and SMEs, currently rely on manufacturing partners located outside the EU. X-FAB’s new facility aims to change that dynamic, providing a competitive European-based alternative when commercial operations begin in 2029.
The European Commission says the facility is the first of its kind in Europe due to its unique combination of MEMS capabilities and advanced packaging technology not previously available within the EU.
Strengthening semiconductor skills, innovation and supply security
Both companies are committed to a series of obligations designed to maximize the impact of public investments.
As foreseen in the European Chip Act, it will support the innovation pipeline for next-generation semiconductor technologies, expand training initiatives to build Europe’s skilled workforce, and maintain priority manufacturing capabilities in the event of a potential supply crisis.
GlobalFoundries and X-FAB also agreed to seek designation as Open EU Foundries, a status that facilitates broad access for European industry.
This certification process is separate from state aid decisions, but closely aligns with the EU’s goal of building a robust and interconnected semiconductor ecosystem.
Together, the two projects represent a significant step forward for Europe’s semiconductor manufacturing ambitions and strengthen the European Union’s push towards greater technological sovereignty.
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