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EU backs German chip fabs with €623m State aid
Jan. 05, 2026 –
By Asma Adhimi, eeNews Europe
The European Commission has cleared €623 million in German State aid to support two new semiconductor manufacturing projects in Germany, marking another concrete step in Europe’s push for chip sovereignty. Specifically, the funding will support new, first-of-a-kind fabs operated by GlobalFoundries in Dresden and X-FAB in Erfurt.
For eeNews Europe readers, this decision matters because it directly affects Europe’s future access to advanced manufacturing capacity, especially for automotive, industrial, aerospace and AI applications. It also shows where public money is flowing under the European Chips Act and which technologies policymakers consider strategically critical.
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