EU Clears €659 Million for German Semiconductor Expansion

Estimated reading time: 1 minute

The European Commission has approved €659 million in German state aid for four semiconductor manufacturing projects, continuing Europe's broader effort to strengthen regional semiconductor production and reduce dependence on overseas suppliers.

According to eeNews Europe, the funding will support four first-of-their-kind facilities focused on key segments of the semiconductor value chain, including silicon carbide materials, power semiconductors, metrology equipment, and specialized detector technologies. 

The largest award—€353 million—will go to Element 3-5 GmbH to build a facility producing silicon carbide (SiC) epitaxial wafers, a critical material for high-power applications such as electric vehicles, renewable energy systems, and industrial electronics. Vishay Siliconix will receive €214 million to manufacture next-generation silicon power MOSFETs, while KLA-Tencor MIE will receive €74.4 million to expand production of advanced optical metrology equipment used in semiconductor fabrication. KETEK GmbH will receive €17.9 million to manufacture specialized detector chips for sensing applications. 

The projects support the objectives of the European Chips Act, which seeks to expand semiconductor manufacturing capacity across Europe while strengthening the region's technological competitiveness and supply chain resilience. European Commission Executive Vice President Teresa Ribera said the approvals demonstrate that Europe is translating the ambitions of the Chips Act into tangible investments. 

For the electronics industry, the announcement underscores that European investment extends well beyond wafer fabrication. The approved projects target enabling technologies, including advanced materials, manufacturing equipment, and power devices, that support the broader semiconductor ecosystem and, ultimately, downstream electronics manufacturing.