Thomas Alsop
Research expert covering the global hardware industry
Semiconductors in Germany - statistics & facts
Germany forms an important part of the European semiconductor industry, with a hive of activity across the entire value chain. Boasting several semiconductor production hubs within its borders, the country is home to an abundant mix of device manufacturers and suppliers for materials and equipment. Supported by news of the European Chips Act, a 43-billion-euro package of support, the German government has also earmarked 20 billion euros to support the country’s semiconductor industry. With projects from the likes of TSMC and Intel already announced, Germany hopes to position itself as a chip powerhouse not just in Europe, but across the globe too.
The German semiconductor industry's strengths align with other strategic sectors
With semiconductors forming an important part of the German economy, the strength of the German semiconductor industry also plays a significant role in the success of other sectors. A steady supply of chips is positive news for industries that depend on semiconductors, with German strengths lying in chips for automotive applications and industrial automation. German players such as Infineon and Bosch are recognized as global leaders in semiconductor technologies for automotive and industrial applications, markets that are expected to have some of the highest growth rates in the coming years.A chip strategy that is helping to attract bigger investment projects
Germany’s semiconductor industry and related sectors benefit from the strong regional clusters situated across the country, with business networks helping to form a complete semiconductor value chain. Collaboration between German, European, and international semiconductor companies is notable in clusters such as Silicon Saxony, as well as sites in Bavaria and Baden-Württemberg. The former is regarded as one of Europe’s biggest micro- and nanoelectronics locations, with firms such as Infineon, Bosch, and GlobalFoundries all having already invested in projects in and around Dresden, with further investment plans expected in the coming years. Additional projects include those of TSMC, the world’s largest semiconductor foundry, investing as much as 10 billion euros to build a chip fabrication plant in Saxony.Benefitting from the European Chips Act
To address the challenges of meeting the future growth in semiconductor demand, under the European Chips Act, the EU has set out plans for 43 billion euros of public and private investment as it seeks to increase its market share by value in leading-edge semiconductors to 20 percent in the next decade. The plan looks to strengthen Europe’s research and technology leadership towards advanced chips, reinforce capacity, and develop a more in-depth understanding of global semiconductor supply chains. Capitalizing on this offer while forming its own roadmap, Germany’s semiconductor ambitions are helping to attract more and larger investment projects from across the world, as well as securing the future of its domestic semiconductor specialists.
