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[BUSINESS] · Germany · 16 sources

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X-Fab breaks ground on new chip factory in Erfurt

Semiconductor manufacturer X-Fab has broken ground on a new chip factory in Erfurt, Germany, representing one of the largest industrial investments in the Thüringen region in recent years. The project involves an investment of between 300 million and 400 million euros to expand production capacity and meet the rising global demand for specialized microchips.

The expansion is supported by 127.4 million euros in state aid, with 80.3 million euros provided by the German federal government and 47.1 million euros from the state of Thüringen. This funding aligns with European Union initiatives aimed at increasing domestic semiconductor production and reducing reliance on Asian imports.

The new facility will focus on micro-electromechanical systems and photonics, which are essential for artificial intelligence infrastructure, data centers, and medical technology. Production is expected to begin in cleanroom conditions by the end of 2028, creating approximately 100 new jobs. The investment comes as X-Fab’s microsystems and photonics division reported a 14 percent revenue increase in the second quarter.

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Erfurt · European Union · Germany · Thuringia · Thüringen · X-Fab

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