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EU Clears €623 Million German Aid for New Chip Plants in Dresden and Erfurt

Brussels frames the projects as pioneering steps to bolster European supply‑chain resilience.

Overview

  • The decision authorizes Germany to support two semiconductor facilities with a total of €623 million in state aid.
  • The package allocates €495 million to GlobalFoundries to expand Dresden production for aerospace, defence and critical infrastructure chips.
  • X‑FAB will receive €128 million for a new Erfurt plant focused on MEMS used in automotive, AI and medical technologies.
  • Commercial operations at X‑FAB’s Erfurt facility are planned to begin in 2029.
  • Both beneficiaries committed to accept priority orders in crisis situations under conditions set by EU state‑aid rules.