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Germany Adopts Microelectronics Strategy to Rebuild Chip Design and Manufacturing

The plan sets a ten-year push to cut dependencies by growing homegrown capabilities with EU backing.

Overview

  • The strategy sets an objective to develop, design and manufacture next‑generation chips domestically within a decade, with emphasis on AI and industrial application chips.
  • Measures are structured around advancing research, launching a targeted skills program for the sector, and creating incentives to expand factories and related technologies in Germany.
  • Ministries are moving to implementation, including efforts to boost chip design, speed research‑to‑production transfer, establish pilot lines for quantum chips, and simplify financing for investors and smaller firms.
  • The government is reviewing potential procurement or other rules that could steer firms toward chips made in Germany, with specific regulatory decisions still to come.
  • The approach aligns with the European Chips Act to strengthen supply‑chain resilience as Germany, which holds about 30% of EU wafer capacity, signals distance from the EU’s 20% global market‑share goal ahead of a planned 2026 Act revision.