FDI
Top Investments of the Year 2025 in Saxony
Feb 12, 2026
Silicon Saxony region continues strong growth trajectory and attracts international companies
In the past years, the Silicon Saxony Cluster has become the largest ICT and microelectronics location in Europe and the fifth largest in the world. By now, one in three chips manufactured in Europe is labeled “Made in Saxony”. The basis for this successful development was the comprehensive expertise and concentration of companies and stakeholders in the industry in what is now the Free State of Saxony since the 1960s, and thus long before German reunification. This highly innovative and integrative ecosystem now comprises about 3,650 companies and some 81,000 employees. They work on every level of the microelectronics and ICT value chain, which is unique.
The semiconductor ecosystem in Saxony offers strong benefits, such as intense cross-industry cooperation, a fruitful exchange with a broad-based research and development environment, and integration in growing international networks, e.g., between Taiwan and Saxony, currently with 49 established scientific collaborations. All of this is supported by a high concentration of technology-oriented universities and first-class training facilities. This creates a strong momentum in regard to technological and future-oriented topics and a unique environment that allows new technologies to quickly be developed to market maturity, innovation cycles to be shortened, and collaborations to be efficiently implemented along complementary value chains. The application of various technologies constitutes another strong point, such as the use of microelectronics in the joint development of innovative products (“co-creation”) by way of close cooperation between different players in various fields, e.g., digital health, renewable energies, and future mobility.
The influence of TSMC is evident
Global players Bosch, GlobalFoundries, Infineon, and X-Fab operate their state-of-the-art semiconductor fabs in Dresden. With the arrival of Taiwanese chip manufacturer TSMC, Saxony is establishing itself in Europe alongside Asia and North America as a global semiconductor location, making it a key European region for the industry. There is no other place worldwide, where so many different chipmaking companies are in one place together.
“We are increasingly noticing the effects of TSMC's investment in Saxony. These are evident not only in greater international recognition, but also in growing interest, particularly from Taiwanese companies. Our long-term goal is for Saxony to establish itself as a ‘Taiwan hub’ in Germany, not only for microelectronics, but also for other industries,” explains Thomas Horn, Managing Director of Saxony Trade & Invest Corp. (Wirtschaftsförderung Sachsen GmbH).
And the region is well on the way to achieving that goal: Associations have been founded, Saxon-Taiwanese conferences and cultural projects are being organized, ever more diverse scientific and economic partnerships are being established, student exchanges are booming, and the community is growing.
All of this attracts even more companies, from Taiwan in particular, but from the US, Japan and other European states as well. Saxony Trade & Invest Corp. has supported these projects with tailor-made consulting services and dedicated assistance. Drawing on its many years of expertise, the agency accompanied the companies through to project completion and promoted their integration into the existing Saxon innovation ecosystem.
Marketech International Corp. (MIC) from Taiwan, an important supplier and service provider for factory infrastructure, chose Saxony as their first European location. The company provides ready-to-use factory and process systems such as automated supply systems for specialty gases, chemicals, and associated surveillance and processing systems, in particular for the semiconductor industry. An office and warehouse location is currently under construction.
TPC – Taiwan Puritic Corp., also comes from Taiwan. Their services include the development, planning and ready-to-use implementation of supply systems for high-purity gases for semiconductor factories that are indispensable for state-of-the-art chip production. Their German subsidiary TPC Germany GmbH established production, storage and office facilities at the Sirius Business Park in Klipphausen near Dresden, where they are now developing a wide variety of local supplier relations and partnerships.
The investment of the Japanese company Kurita Water Industries Ltd. is another good example. In the course of the takeover of engineering service provider Arcade Engineering, the global specialist for industrial water processing and process management pooled their activities in Saxony and purposefully chose the city of Radebeul near Dresden as their central operative basis for projects on the European market. As part of the ongoing project implementation, around ten Japanese employees are working on site, primarily performing engineering, coordination, and project management tasks.
The added value offered by the cluster is recognized within Europe as well. For example, the Finnish company Chipmetrics OY is building a plant in Dresden. This company develops and provides measurement solutions for manufacturing processes in the semiconductor industry. More specifically, it supplies innovative metrology chips and services using ALE (Atomic Layer Etching) technology.
These new settlements boost the continuous growth of the Silicon Saxony Cluster: The new suppliers strengthen the ecosystem with innovative technical solutions, networks, and contracts. Saxony wants to use this momentum as they compete for the federal Chip Design Center Germany (KCDD), together with Bavaria. This competence center is intended to be a focal point for design competence and design enablement for universities, research facilities, and businesses. This would close a major gap in the value chain in the German microelectronics industry and further strengthen the chip design expertise in Saxony.
Policies to ensure the availability of skilled workers
Saxony’s initiative in the field of qualification of skilled labor is another important signal for the future of the industry, Thomas Horn says: “The planned new training campus in Dresden, the Microelectronics Training Cluster (SAM) and the introduction of the dual microtechnologies training course in English set new international standards for the next generation of semiconductor experts.”
The Dresden Center of Excellence for Electrical Engineering (BSZ), which will be built by 2028, is going to be a state-of-the-art educational campus where about 2,200 students will be trained in professions directly related to the microelectronics and semiconductor industry. The fact that the project was granted a 100 million euros subsidy from the EU’s STEP budget (Strategic Technologies for Europe Platform) shows the significance of this topic on the European level. Furthermore, the BSZ will take on a pioneering role in the globalization of professional training. This is the first time that an entire training course will be held in English in Dresden. This way, the school opens its doors for trainees from all over the world, in response to the global nature of the semiconductor industry. The Microelectronics Training Cluster (SAM) also aims at meeting the growing demand for skilled labor in the semiconductor industry. Up to 1,000 training places are planned to be provided as of the training year 2028/29. In addition, the expansion of the international schools in Saxony also helps international experts to feel at home here together with their families and plan their career in Saxony on the long run.
Reliable political support
“Why Saxony is quicker than Arizona at building chip factories”, that was the headline of an article in the German trade journal “Handelsblatt”, using the settlement of TSMC as an example to demonstrate how fast Germany can be if everyone is truly dedicated. At SEMICON Taiwan last year, Saxony’s State Minister for Economic Affairs, Dirk Panter, emphasized the benefits offered by this location: “With the largest construction site in Germany currently being in Dresden, and with decades of experience and efficiency in regard to the realization of major investments, we offer stability, reliability, innovation, and great opportunities for international partners.”
Other companies have already profited from this record speed in complex permit procedures.
GlobalFoundries obtained the immission control permit for the expansion of its hazardous materials warehouse within just four months from the Saxony State Directorate, which specializes in such procedures. The regional authorities also move as fast as possible to support the economy. The most recent beneficiary of this support was the Japanese company TDDK in the district of Bautzen. They obtained the permit for their fifth expansion, which amounted to 90 million euros, in just two months.
Consequently, Saxony offers companies and investors alike ideal conditions for development, numerous points of contact to establish profitable partnerships, and the opportunity to realize their investment projects within a competitive timeframe. Saxony Trade & Invest offers support and assistance in bringing potential partners together with the right players.
Please do not hesitate to contact us!
Contact:
Saxony Trade & Invest Corp. (STI)
Investor services
Andreas Lippert
Head of Department
Phone: +49 (351) 2138-210
andreas.lippert@wfs.saxony.de
