Milestone in strengthening Europe’s semiconductor manufacturing capacity under Chips Act reached

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Oct. 16, 2025 – 

The European Commission today formally granted the status of Integrated Production Facility (IPF) and Open EU Foundry (OEF) under the EU Chips Act to four semiconductor projects across the Union for the first time.

This marks a significant milestone in strengthening Europe’s semiconductor manufacturing capacity, enhancing the resilience and security of supply of the Union’s semiconductor ecosystem.

Under the new scheme, facilities designated as OEFs or IPFs will be granted priority administrative support, they will have their permit processes streamlined and will have advanced access to pilot lines under the Chips for Europe Initiative. At the same time, these facilities may be obliged to accept and prioritise crisis-relevant orders (priority-rated orders) in times of crisis.

What are OEFs and IPFs?

• OEFs (Open EU Foundries) are first-of-a-kind manufacturing facilities in the EU that dedicate at least part of their capacity to producing chips for external customers. By opening their capacity to other companies, they contribute to global supply chain resilience.
• IPFs (Integrated Production Facilities) are vertically integrated semiconductor manufacturing facilities that combine several stages of chip production, from design and manufacturing to testing and packaging.

Both categories are core to the EU’s ambition to reduce dependency on non-EU supply chains, and to increase strategic autonomy in semiconductor technologies.

Several companies have been awarded State aid before. The four projects that have been awarded the IPF or OEF status have previously received State aid. These projects are carried out by the following companies:

• ESMC, Germany (OEF) is a joint venture between Taiwan Semiconductor Manufacturing Company (‘TSMC'), Bosch, Infineon, and NXP. This new facility will produce high-performance, energy-efficient chips using advanced FinFET technology on 300mm wafers, with production expected to reach 480,000 wafers annually by 2029. It will function as an open foundry, serving a wide range of customers, including those beyond its shareholders. See State aid decision.
• Ams-OSRAM, Austria (IPF) will setup an integrated facility to enable front-end manufacturing for 180 manometer mixed signal and 180 nanometer automotive grade qualified technologies. See State aid decision.
• Infineon Technologies Dresden, Germany (IPF) will setup an integrated facility to produce a broad portfolio of technologies and products within two heterogenous technology families, discrete power and analog/mixed-signal integrated circuits. See State aid decision.
• STMicroelectronics, Italy (IPF) will setup an integrated facility to offer vertical integration of the entire 8-inch Silicon Carbide (‘SiC’) value chain production processes not yet present in the Union. See State aid decision.

Read more about the European Chips Act.

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