EU Commission: Commission Approves €76 Million in German State Aid for a Production Facility for Innovative Semiconductor Test Systems

The European Commission has approved a €76 million German measure under EU state aid rules to support QuantumDiamonds GmbH in establishing a new production facility for semiconductor test systems in Munich. In line with the European Chips Act and the Commission’s 2024–2029 policy guidelines, the measure will help strengthen the EU’s position and autonomy in the semiconductor value chain.

State Aid Measure by Germany

Germany has notified the Commission of its planned funding for QuantumDiamonds’ “IPF-ATEST” project for approval. The project involves the development and manufacture of advanced measurement and inspection systems for the semiconductor industry, based on novel quantum sensors that enable high-resolution, three-dimensional inspections of modern chips. It will be the first production facility for quantum-sensor-based semiconductor measurement and inspection systems in the EU.

The aid will be granted in the form of a direct grant of 76 million EUR.

As part of the initiative, QuantumDiamonds

• will ensure that the project has far-reaching impacts and, in particular, positively affects the EU’s semiconductor value chain by strengthening security of supply and increasing the number of skilled workers;
• intensify collaboration with universities and research institutions;
• fulfill priority orders in the event of a supply shortage;
• create opportunities for SMEs by making part of the facility available to early-stage high-tech companies, startups, and scientific laboratories;
• share with Germany any potential project-related profits that exceed current expectations.

The Commission’s Assessment Under State Aid Law

The Commission has assessed Germany’s measure in accordance with EU state aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which allows Member States to promote the development of certain economic sectors under specific conditions, as well as in accordance with the principles of the European Chips Act.

The Commission has reached the following conclusion:

• The measure promotes the development of economic activity by creating production capacity for semiconductor test systems in Europe.
• This is a production facility of a type not previously seen in Europe.
• The aid has an “incentive effect,” as the company would not make the investment in Europe without public funding.
• The measure has a limited impact on competition and trade within the EU. It is necessary and appropriate to ensure the resilience of the European semiconductor supply chain. Furthermore, given the proven funding gap, the aid is proportionate and limited to the necessary minimum.
• The measure has far-reaching positive effects on the European semiconductor ecosystem and strengthens security of supply in Europe. The aid recipient will collaborate with startups, SMEs, and research institutions. QuantumDiamonds is also applying for its facility to be recognized as a so-called integrated production site within the meaning of the European Chips Act and commits to fulfilling all associated obligations.

Consequently, the Commission has approved Germany’s measure under EU state aid rules.

Background

In November 2024, Germany published a call for proposals for innovative investment projects in the European semiconductor value chain. Today’s decision concerns the fifth project preselected under this call for proposals.

In its communication “A Chips Act for Europe,” the Commission noted that investments in new advanced semiconductor manufacturing facilities are important for ensuring security of supply in the EU and supply chain resilience, and have significant positive effects on the economy as a whole. In addition, the Commission identified a number of factors relevant to a case-by-case assessment directly based on Article 107(3)(c) TFEU.

On June 3, 2026, the Commission adopted a new proposal for the Chips Act 2.0, which introduces new measures to further advance the chip industry, reduce strategic dependencies, and promote the manufacture of advanced chips in the EU. The Chips Act 2.0 builds on the progress achieved with the original Chips Act and aims to consolidate Europe’s existing strengths (including off-the-shelf chips) and build capacity in cutting-edge semiconductor technologies. This will enable the EU to maintain its position as a key player in the value chain while strengthening its resilience and reducing strategic dependencies and supply chain vulnerabilities.

Today’s approval marks the Commission’s fourteenth decision based on these principles. Under measures approved to date, various Member States have granted aid totaling approximately 14.2 billion EUR to promote the production of various semiconductor technologies and applications.

Further Information

Once all issues relating to the protection of confidential data have been resolved, the non-confidential version of the decision will be made available in the State Aid Register on the Commission’s DG Competition website under number SA.120180. The electronic newsletter Competition Weekly e-News provides updates on new state aid decisions published online and in the Official Journal.

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