The European Commission has given the green light to Germany’s plan to inject €623m into two cutting-edge semiconductor manufacturing projects, with the goal of strengthening Europe’s technological resilience and reducing its dependence on global chip suppliers. The funding will support new facilities operated by GlobalFoundries in Dresden and X-FAB in Erfurt, aligning with the EU’s semiconductor strategy outlined in the European Chips Act. Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, emphasized the importance of these investments in enhancing competition and innovation within Europe’s semiconductor sector.
GlobalFoundries to build Europe’s first large-scale dual-use wafer line
GlobalFoundries is set to receive a significant portion of the investment for its SPRINT project, which focuses on expanding its 300-millimeter wafer capacity in Dresden. The project will leverage technologies developed under the Important Projects of Common European Interest (IPCEI) for microelectronics, adapting them for dual-use applications to cater to both civilian and defense needs. This initiative marks a milestone in Europe’s quest for a secure, autonomous supply chain for high-performance chips.
X-FAB to establish Europe’s first MEMS-focused open foundry
X-FAB’s Fab4Micro project in Erfurt, supported by the Commission, aims to construct an open foundry dedicated to micro-electromechanical systems (MEMS) and advanced packaging. This facility will cater to sectors like automotive innovation, artificial intelligence hardware, and medical devices, providing manufacturing services to fabless chip companies across Europe. By offering a competitive, Europe-based alternative, X-FAB seeks to reduce the reliance of smaller firms on non-EU manufacturing partners.
Strengthening semiconductor skills, innovation, and supply security
Both GlobalFoundries and X-FAB have committed to initiatives that promote innovation, enhance workforce training, and ensure priority manufacturing capacity during supply crises as outlined in the European Chips Act. They have also expressed interest in becoming Open EU Foundries to facilitate broad access for European industry, aligning with the EU’s objective of fostering a robust semiconductor ecosystem. These projects signify a significant advancement in Europe’s semiconductor manufacturing aspirations, reinforcing the region’s journey towards greater technological sovereignty.
