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Semiconductor Location Germany

Germany is a major microelectronics force, securing its place at the top of the international table as Europe’s leading semiconductor production location.

Future production location Germany

The country has announced ambitious investment plans for the domestic production of semiconductors – a 2025 timeline has been agreed for Europe to develop its own leading-edge processor chips.  Germany wants the European chip industry to invest up to EUR 50 billion in semiconductor production to establish European digital sovereignty.

“We want to strengthen the production of chips in Germany and Europe in order to become less dependent on international supply chains."

Federal Minister for Economic Affairs and Climate Action Dr. Robert Habeck


Germany is investing significantly in its microelectronics sector to establish the country as an international semiconductor production force. The ambitious deployment and development of semiconductor-based applications in the automotive, energy and manufacturing sectors is critical to the country meeting its climate goals. Germany’s climate neutrality targets are creating attractive business opportunities and favorable market conditions for international companies.

Half of all new EU projects go to Germany

Germany is already home to over half of all new EU microchip projects as a new study by Germany Trade & Invest shows. It identifies state support as the main reason for the current boom in semiconductor production in Europe’s largest market. Ten of the 16 microchip plant projects in the European Union are located in Germany, as detailed by the GTAI overview. 

Microelectronics and semiconductor network and cluster landscape

Germany’s microelectronics and semiconductor sectors are organized into strong regional clusters that form a complete industry value chain network responsible for developing the smart, integrated systems required to meet industry’s changing needs. Germany is already home to a number of strong semiconductor and microelectronics sites including the states of Saxony, Bavaria and Baden-Württemberg.

Internationally active companies, renowned research institutions, small and medium-sized enterprises, and start-ups are all at home in the different industry clusters across the country. These companies – specialists in areas including sensor technology, interconnection technology and system integration – enjoy international success.


Semiconductor location Germany executive summary

  • Strongest semiconductor ecosystems in Saxony, Bavaria and Baden Württemberg – biggest in Europe
  • EU & Germany enabling large investments through IPCEI and other programs
  • Key customers & partners in chip design, 5G, automotive, industry, EUV in EU/Germany
  • Germany is fully dedicated to renewable energy with total share of 46 percent in 2020
  • Germany and EU are prepared to make speedy permits and grants available
  • Germany Trade & Invest and ministries ensure political support on all levels of government

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