Germany Accelerates Semiconductor Push Backed by EU Chips Act

Germany is rapidly emerging as a strategic focal point for Europe's semiconductor ambitions, leveraging policy momentum from the €43 billion European Chips Act. This initiative aims to double the region’s chip production capacity by 2030, with Germany actively positioning itself to attract a significant share of upcoming investments.

Recent global supply chain disruptions have highlighted the vulnerability of overconcentration in Asia. In response, both Europe and the U.S. are diversifying their semiconductor ecosystems. The EU currently contributes just 10% of global chip output and is targeting 20% by the end of the decade.

Germany already commands one-third of Europe’s chip production, anchored in Saxony. Major semiconductor players are doubling down:

• Intel is investing €30 billion into dual fab sites in Magdeburg.

• TSMC, in collaboration with Bosch, Infineon, and NXP, is planning a €10 billion facility in Dresden.

  
  

• Wolfspeed, GlobalFoundries, and Littelfuse are expanding operations across Saarland and Dortmund.

However, with an estimated 62,000-worker talent gap, Germany faces a critical bottleneck. Building a strong technical workforce will be as vital as capital investments in realizing the EU’s long-term semiconductor vision.

At Kanetora, we closely monitor developments shaping the global semiconductor supply chain – from government incentives to investment hotspots – to better support partners in sourcing high-quality wafer materials worldwide.