The European Commission has approved €659 million in German State aid for four new semiconductor manufacturing projects, marking another step in the EU’s drive to strengthen its domestic chip supply chain and reduce dependence on overseas production.
The funding will support first-of-a-kind facilities spanning power semiconductors, silicon carbide materials, semiconductor manufacturing equipment and specialist detector chips. The projects align with the objectives of the European Chips Act and the Commission’s broader industrial strategy.
For eeNews Europe readers, the announcement highlights where public investment is flowing across Europe’s semiconductor ecosystem and which technologies are attracting strategic backing. It also offers insight into the types of manufacturing capabilities the EU sees as critical for improving supply chain resilience and long-term competitiveness.
Four projects target key semiconductor technologies
Germany will jointly fund the projects with the relevant regional authorities, with the largest grant — €353 million — going to Element 3-5 GmbH. The company will build a facility in Baesweiler, North Rhine-Westphalia, to manufacture silicon carbide (SiC) epi-wafers. The wafers are designed for demanding applications in automotive, industrial, telecommunications and energy systems, while the production process is expected to improve energy efficiency, yield and manufacturing performance.
Vishay Siliconix Itzehoe GmbH will receive €214 million to expand production of next-generation N- and P-channel power MOSFETs at its existing site in Schleswig-Holstein. These devices are widely used in automotive power electronics as well as industrial and commercial systems.
KLA-Tencor MIE GmbH has been awarded €74.4 million to manufacture advanced optical overlay and film metrology equipment in Weilburg, Germany. The equipment is used for process control in semiconductor fabrication and is intended to support both leading-edge and near-leading-edge chip manufacturing.
The remaining €17.9 million will go to Munich-based KETEK GmbH, which plans to establish production lines for silicon drift detector (SDD) chips and graphene radiation entry window (GREW) chips. These components are used in industrial sorting and recycling systems, with the new facility expected to improve manufacturing integration and efficiency.
Support tied to wider ecosystem benefits
The Commission said all four projects qualify as first-of-a-kind facilities in Europe and would not proceed in their current form without public funding. As part of the approval, the companies have committed to collaborating with universities and research institutions, supporting workforce development through specialist training, prioritising deliveries during semiconductor shortages and sharing potential project-related profits with Germany if returns exceed expectations.
The four companies are also applying for Integrated Production Facility status under the EU Chips Act, which would require them to meet additional obligations aimed at strengthening Europe’s semiconductor resilience.
Commenting on the decision, Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said: “Today’s approval of Germany’s support for four new projects in the semiconductor value chain shows Europe is turning the ambitions of the EU Chips Act into action. By backing innovations in semiconductors, we are strengthening our technological sovereignty and Europe’s competitiveness.”
The approvals follow Germany’s 2024 call for semiconductor investment projects and come shortly after the Commission unveiled its proposed Chips Act 2.0, which aims to further expand Europe’s semiconductor manufacturing capabilities and reduce strategic supply chain dependencies.
To find out more about the latest industry updates and innovations in semiconductor fab construction, meet with solution providers and hear talks from expert speakers, attend the 4th Constructing Semiconductor FAB Summit Europe: Advances in Planning, Design and Engineering, taking place October 21-22, 2026, in Munich, Germany.
For more information, click here or email us at info@innovatrix.eu for the event agenda. Visit our LinkedIn to stay up to date on our latest speaker announcements and event news.
Source:
