FACT SHEETThe Semiconductor
Industry in Germany
Issue 2023

The United States and Asia have dominated semiconductor production for decades. However, Germany is now
seeking to become one of the leading chipmakers inEurope and the world. The country is the beating heart of
the European semiconductor industry – ranking among
the world’s top semiconductor production locations.
Germany boasts an unparalleled density of world-leading
device manufacturers and suppliers for materials, components, and equipment across the entire value chain. Demandfor microchips and nanochips will grow exponentially as thetransition to green energy and electric mobility progresses
and as big data and artificial intelligence become increasingly
important.
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. The EU and Germany have reactedwith rapid measures to boost domestic chip production
capacity and develop supply and value chain resilience. The
European Chips Act, announced in February 2022, sets thetarget of increasing EU production capacity to 20 percent of
the global market by 2030.
This would require quadrupling current production capacity.
The European Commission has earmarked EUR 43 billion forthis purpose. This helps make Germany even more attractive
as an expansion location for multinational tech companies.
Germany’s climate neutrality targets are creating attractive
business opportunities and favorable market conditions forinternational companies.

→ For more information, please visit our website

www.gtai.com/semiconductors

The Semiconductor Industryin Numbers
1 in 3chips produced in Europe is madein Germany

20 percent

of global semiconductor production
from the EU by 2030

USD 583.5 billion

worldwide semiconductor industry
revenue in 2021

USD 48 billion
European semiconductor industry
turnover in 2021

EUR 50 billion
investment to secure Germany’s position as Europe’s
leading semiconductor production location

EUR 43 billion
European Chips Act funding to establish Europe asmajor semiconductor production hub by 2030

Sources: SIA, ESIA 2022, ZVEI 2019

MARKET OPPORTUNITIESGerman Semiconductor Landscape
Germany’s microelectronics sector forms a complete
ecosystem representing the entire industry value chain
network responsible for developing the smart, integrated systems required to meet industry’s changing

needs. Internationally active companies, re-nowned
research institutions, small and medium-sized enterprises, and start-ups are all at home in different industry
clusters across the country.

Semiconductor Manufacturing and Research

Germany’s Semiconductor
Clusters

Semiconductor Success
Stories in Germany

Germany is already home to a number of strong semiconductor and microelectronics sites including the states ofSaxony, Bavaria and Baden-Württemberg. Here, companies and research institutions – specialists in areas
including sensor technology, interconnection technology
and system integration – find the ideal conditions todevelop systems and technologies for tomorrow’s needs.

Germany’s chip production ambitions are helping attract
more and larger investment projects as the continent
seeks to establish security of supply and technologicalsovereignty into the future. Intel, Apple, and GlobalFoundries are among the international companies
investing in facilities in the Federal Republic of Germany.

7.5

Silicon Saxony
Silicon Saxony is a network for the microelectronics, smart
systems, photovoltaic, and software sectors. The Cool Siliconcluster focuses on developing energy-efficient solutions incomputing, broadband wireless and sensor networks. Saxony
is Europe’s biggest microelectronics location, home to companies including GlobalFoundries, Infineon and Bosch.

Semiconductor Manufacturing
SchleswigHolstein

Network Organization/Cluster

Mecklenburg
Western-Pomerania

Niedersachsen

Brandenburg
Saxony-Anhalt

Thuringia

North Rhine-Westphalia

SaxonyHessenLIST OF COMPANIES CORRESPONDSTO NUMBERS ON THE MAP
RhinelandPalatinate

Bavaria

Saarland

Baden-WürttembergSemiconductor Manufacturing and Research
X-FabVishay-Siliconix
Silex
X-FabGlobalFoundries
Infineon
Bosch
X-FabSAW Components
Semikron
Texas Instruments
TDK Micronas
Semiconductor Manufacturing
InfineonIntel (planned)
Osram
Infineon
Qualcomm
BoschVishay
Network Organization/Cluster
Bavarian Chips AlliancemicroTEC Südwest
Silicon Saxony

Source: Silicon Germany, GTAI Research 2022

microTEC Südwest
The microTEC Südwest cluster in the southwestern regional
state of Baden-Württemberg is a major European expertiseand cooperation network for intelligent microsystem technology solutions in manufacturing and health. With its Dutch
partner ASML, Oberkochen-based Zeiss is the world’s only
manufacturer of extreme ultraviolet lithography machines forchip production.
Bavarian Chips Alliance
Bavaria is home to some of the world’s leading semiconductor
producers, including Infineon Technologies and Siltronic, as
well as the Bavarian Chips Alliance. As the site of many leading actors in electrical engineering and electronics, the southern state plays a big role in the development of technologies
for Industrie 4.0, big data solutions and the Internet of Things.
Fraunhofer Group for Microelectronics
A number of institutes within the Fraunhofer Group forMicroelectronics and the Leibniz Association are also playing
a decisive role in consolidating Germany’s role as a majorinternational semiconductor and electronics research location.
The Fraunhofer Group for Microelectronics is a research anddevelopment service provider in the areas of microelectronics and smart systems integration. Part of the FraunhoferGesellschaft, Europe’s largest application-oriented researchorganization, the group seeks to bridge the gap between
fundamental research and product development in the fieldsof microelectronics/nanoelectronics and microsystem &communication technology in order to strengthen German
innovativeness.

→ Find more information about the clusters,sites, and companies on our website.

IntelUS-based semiconductor manufacturer Intel officiallyannounced Magdeburg as the location for its new European
semiconductor production facilities in March 2022. Intelestimates its “Silicon Junction” site in Magdeburg will create
3,000 permanent high-tech jobs for producing next-generation, two-nanometer-wide chips, and will initially spend
EUR 17 billion on its new location – making it the largestever foreign direct business investment in the country andin Europe as a whole. The “multifabs” are scheduled to start
operations in 2027.
AppleMeanwhile, Apple is investing more than EUR 1 billion inits European Silicon Design Center in Munich. The 30,000square-meter facility, which will focus on mobile wirelesssemiconductors, is one step in Apple’s efforts to build aworld-class team of engineers in Munich and across Germany.
GlobalFoundries
US chip manufacturer GlobalFoundries has announced plans
to more than double capacity at its Dresden site – increasing
production from 400,000 wafers to more than one million
wafers annually. This represents an investment of more thanEUR 1 billion.

Reasons to set up production in Germany· Strongest semiconductor ecosystems in Saxony, Bavariaand Baden Württemberg – biggest in Europe· EU & Germany enabling large investments through European Chips Act and related funding programs· Growing annual semiconductor turnover in Germany, withkey customers & partners in chip design, 5G, automotive,
industry throughout Germany and the EU· Germany and EU are prepared to make speedy permits andgrants available· Germany Trade & Invest ensures support on all stages ofthe settlement process, contact research@gtai.com

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ContactJerome Hull
Germany Trade & Invest
Mechanical & Electronics Teamjerome.hull@gtai.com· Market and industry reports· Market entry analysis· Business and tax law information· Funding and financing information

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December 2022

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