This is not about an exclusive settlement in Saxony, but about a contribution to strengthening European industrial expertise as a whole. Silicon Saxony is contributing as a reliable partner and is calling on the EU to consistently focus on components, e.g. in chip design, and technologies that are already available and can be manufactured in Europe today when setting up AI gigafactories. At the same time, the industry association is expressly offering to cooperate with the German government in order to pool expertise and make concrete progress on Europe’s technological sovereignty.
The aim is to ensure that the billions of euros invested in the development of a European AI infrastructure do not bypass Europe as a semiconductor and technology location. Instead, existing potential is to be used and expanded in a targeted manner in order to make a substantial contribution to the technological independence of the EU and the structural strengthening of the European semiconductor industry.
“The AI Continent Action Plan is attracting increasing interest. It is crucial that we think together and politically coordinate projects such as the EURO Stack, the Next Generation EU Chips Act and the European AI strategy,” explains Frank Bösenberg, Managing Director of Silicon Saxony. “Anyone planning AI gigafactories in Europe should also consistently rely on chip components that are already being produced in the European single market. Otherwise, not only will value creation flow away, but new strategic dependencies will also arise. With average investment sums of three to four billion euros per location, this is not a marginal technical issue, but a core task of industrial policy,” says Bösenberg.
This also gives new relevance to the debate on the allocation of public funds. Just a few months ago, the planned Intel subsidy in Magdeburg amounting to 9.9 billion euros was questioned with reference to the unclear demand in Europe. Today it is clear that the demand for high-performance chips is increasing rapidly. At the same time, the costs of external procurement outside Europe are rising, particularly with regard to replacement cycles and operating costs over the entire service life. Dependence on non-European manufacturers is increasingly becoming a competitive risk. “It cannot be that Europe pays and the world delivers,” says Bösenberg. It is therefore time to rethink industrial policy. Not as a pure funding instrument, but as an active value creation policy in the European interest. Saxony is ready to take responsibility for this.
Semiconductor industry remains resilient and holds its own despite recession and economic uncertainty
Despite the recession, energy crisis and geopolitical uncertainties, the Saxon semiconductor industry remains robust. As of September 30, 2024, total employment in the microelectronics and ICT sector remained at the previous year’s high level of around 81,000 employees – a plus-minus-zero growth in a declining overall Saxon labor market. Particularly noteworthy: in a shrinking economy (-0.3% in Saxony), the industry has managed to fully replace age-related retirements. The software industry also remains stable with around 40,000 employees. “After two years of above-average employment growth, the industry is now showing a linear development again, comparable to the long-term trend of the last 20 years,” explains Prof. Dr. Frank Schönefeld, Chairman of the Silicon Saxony Executive Board. “This is not a weakness, but an expression of stability in a difficult environment.”
“The current figures do not yet include the development of the first half of 2025. Possible employment effects from investment decisions from late summer 2024 are also not yet reflected in the data. The forecast of over 100,000 employees by 2030 remains unchanged. It is supported by the continuing high demand for skilled workers in production, development and software,” says Prof. Dr. Frank Schönefeld.
36 percent of Silicon Saxony Day participants came from other European and non-European countries
Silicon Saxony Day 2025 sets new standards and underlines Saxony’s role as a European semiconductor center
Full house at Dresden Airport. More than 1,000 participants make the 19th Silicon Saxony Day 2025 the largest industry meeting of Silicon Saxony to date. The number of visitors doubled compared to the previous year. In addition to representatives from industry, science and politics, eleven international business delegations, including NY Creates from the state of New York, traveled to the event, which once again confirmed Saxony’s central role in the European semiconductor and high-tech network.
The theme islands of the 19th Silicon Saxony Day offered exciting insights and outlooks in line with the Silent Disco principle.
Last year, the focus was primarily on questions relating to the infrastructural support of chip factory expansion and the recruitment of skilled workers. “The expansion in the north of Dresden is progressing successfully. The foundations for further growth have been laid,” says Frank Bösenberg. However, with a view to the start of production planned for 2027, a new phase is beginning for the region, a phase in which strategic decisions at European level are becoming increasingly important. “The numerous investments by medium-sized companies along the semiconductor value chain confirm Saxony’s attractiveness as a location,” continues Bösenberg. However, while the development of individual districts and municipalities remains important, the high-tech cluster is now increasingly focusing on overarching industrial policy decisions. The planned European AI gigafactories mark a strategic turning point in this context. “If you want to secure value creation and expand Europe’s technological sovereignty, you have to think about this development at an early stage,” emphasizes Bösenberg. Silicon Saxony is therefore actively involved in the debate and is pursuing the clear goal of combining the perspective of industry with a long-term will to shape the future.
About Silicon Saxony
With over 600 members, Silicon Saxony is Saxony’s largest high-tech network and one of the largest microelectronics and IT clusters in Germany and Europe. As a self-financed association, Silicon Saxony has connected 2,000 manufacturers, suppliers, service providers, colleges/universities, research institutes, public institutions and industry-relevant start-ups in Saxony and beyond since it was founded. The overarching goals of the network’s work include expanding and strengthening Europe’s leading microelectronics location and driving forward the parallel development of Saxony as a software state.
– – – – – –
Further links
👉 www.silicon-saxony.de
Photos: Silicon Saxony, Tommy Halfter
