Asian Investors Favor Germany as a Business Hub

Germany Trade & Invest (GTAI) and the economic development agencies of the Federal Republic of Germany’s sixteen regional states recorded a total of 1,564 foreign greenfield and expansion investment projects in 2025, excluding mergers and acquisitions. The combined investment volume amounted to 11.8 billion euros. Of these projects, 390 originated from the Asia-Pacific region, representing approximately one quarter of all foreign investment projects recorded. This continues the strong momentum in recent years after the low of 265 projects in the COVID-year 2021.

Strong Investment Activity from Asian Countries

Asia-Pacific ranked third among source regions behind the European Union and other European countries. China remained the leading Asian investor and the most important foreign source country overall, accounting for 228 projects. East Asia’s high-tech economies Japan, South Korea and Taiwan are still very important source countries. India with 43 projects and Southeast Asia with 21 projects are gaining ground. 

From a sector perspective, electronics and automation attracted the largest share of Asian investment with 116 projects (30 percent). This was followed by mobility and logistics with 78 projects (20 percent) and energy and resources with 60 projects (15 percent). The digital economy generated 51 projects (13 percent), while healthcare and life sciences accounted for 22 projects (6 percent). The remaining 63 projects (16 percent) were distributed across a wide range of other industries.

Most Asian investors focused on market access and customer proximity. Sales, marketing and support operations represented 38 percent of all projects. At the same time, Germany continued to attract value-added activities, with 24 percent of investors establishing manufacturing operations and/or research and development activities. This is underlining the country’s role as a key location for innovation and industrial production in Europe.

Advanced Manufacturing Draws Interest

According to recent investment announcements, several Asian companies are further expanding their activities in Germany across advanced manufacturing, digital infrastructure and semiconductor technologies. 

Chinese construction machinery manufacturer Zoomlion inaugurated Phase II of its factory project in the western German town of Waldlaubersheim in 2025. The company is investing more than 50 million euros in the expansion of its German production site, which will manufacture tower cranes, truck cranes and concrete machinery. Once fully operational, the facility is expected to produce more than 1,000 units annually and generate an output value of around 300 million US dollars (US$), further strengthening Germany’s role as a manufacturing hub for the European construction equipment market.

Focus on Semiconductors and Digital Economy

Asian investors are also increasing their presence in Germany’s digital economy. Japanese technology company NTT DATA announced the expansion of its data center footprint in Frankfurt through the acquisition of additional land. The project will become the company’s fifth data center site in the Frankfurt region and add approximately 80 megawatts of capacity. The investment forms part of NTT DATA’s broader global expansion strategy, supported by a multi-billion-dollar investment program aimed at meeting growing demand for cloud services and artificial intelligence infrastructure. 

Germany continues to attract major semiconductor investments from Taiwan. In addition to the ongoing construction of TSMC’s 10-billion-euro semiconductor manufacturing facility in Dresden, the company announced the establishment of its new European Design Center in Munich. Opened in 2025, the center supports customers in developing high-performance and energy-efficient chips for industries such as automotive, artificial intelligence, telecommunications and the internet of things. The decision highlights Bavaria’s importance as a leading European microelectronics and innovation cluster. 

At the same time, Australia-based Lotus Energy Recycling announced plans to invest approximately 250 million US$ in a solar panel recycling facility in eastern German regional state of Saxony. The 24,000-square-metre site will focus on the recovery of high-purity materials from end-of-life photovoltaic modules and is designed to achieve net-zero operations. Supported by regional and federal stakeholders, the project reflects Germany’s attractiveness not only for high-tech manufacturing but also for sustainable and circular-economy investments.

Potential for More Greenfield Investments from Asia

Asia is expected to remain one of the most important sources of foreign direct investment for Germany in the coming years. While investment patterns are evolving, the long-term fundamentals continue to support stronger economic engagement between Germany and Asia. 

Asian economies are seeking to internationalize their businesses, diversify supply chains and establish a stronger presence in Europe. Investing in Germany offers access to Europe’s largest economy, a highly innovative industrial base, advanced research capabilities and a large European market of 450 million consumers.

Germany Remains Attractive for Asian Companies

Future opportunities are also likely to arise from the transformation of the German economy. The expansion of renewable energy, the electrification of industry and transport, growing demand for semiconductors, artificial intelligence applications and digital infrastructure are creating new markets for Asian companies. In addition, Germany’s strong industrial clusters, skilled workforce and research landscape make the country an attractive location for companies seeking to move closer to European customers and innovation networks. 

As global supply chains become more regionalized, establishing production, R&D and service activities in Germany can provide Asian firms with greater resilience and long-term access to European markets. While regulatory requirements and international competition for investment have increased, the combination of Germany’s economic scale, technological strengths and strategic location suggests considerable potential for further greenfield investments from Asia in the years ahead.