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In December 2025, the European Commission gave the green light for the funding. The project is a key component of the European Chips Act (ECA), through which Europe aims to strengthen its technological independence in the field of semiconductors.<\/p>\n
The new facility is scheduled to begin production by the end of 2028. This will enable X-FAB to expand its production capacities for microelectromechanical systems (MEMS), highly integrated microsystems, and photonics. MEMS are systems that incorporate electronic, sensory, and mechanical elements at the micro- and nanometer scales and are used, for example, in smartphones, vehicles, medical devices, and other applications. The investment will also create new manufacturing capacity for high-performance microsystems that use heterogeneous integration technology to combine numerous electronic and optical functions in a single component\u2014such as those required for data centers or optical systems. The Fab4Micro project will also create new, highly skilled jobs in the field of microsystems.<\/p>\n
\u201cThe deliberate decision to invest in Erfurt demonstrates that the Free State of Thuringia is recognized as a competitive industrial location and offers excellent conditions for investment. This strengthens Thuringia\u2019s position as a major center for microelectronics and semiconductors in the heart of Europe and secures high-quality production and jobs in Thuringia,\u201d said Thuringia\u2019s Minister President Mario Voigt. \u201cAt the same time, Fab4Micro is a key project for the technological sovereignty of Germany and Europe. Anyone who wants to be independent in the technologies of tomorrow must also be able to develop and produce them themselves. That is exactly what this investment in Erfurt stands for.\u201d<\/p>\n
\u201cWe greatly appreciate the commitment of the federal government and the Free State of Thuringia to the implementation of our Fab4Micro project. This funding marks an important milestone in the transformation of our Erfurt site into X-FAB\u2019s microsystems center. As the place where X-FAB\u2019s history began more than 30 years ago, Erfurt holds special significance for our company\u2014and this investment is a strong commitment to its future,\u201d said Damien Macq, CEO of the X-FAB Group. “It supports our strategy of specialization and diversification while strengthening a site that is already recognized as a center of excellence for microsystems technology. The new cleanroom will enable us to gradually expand our capacity and capabilities in line with customer demand and our customers\u2019 involvement. With our expertise in heterogeneous integration and advanced wafer-scale assembly, the Fab4Micro project will also contribute to our activities in emerging markets such as photonics for data centers.\u201d<\/p>\n
Dr. Gabriel Kittler, Site CEO of X-FAB in Erfurt, added: “We are laying the foundation for the large-scale industrialization of innovative microsystems and photonics solutions, thereby further strengthening Erfurt\u2019s role in the semiconductor ecosystem in Thuringia, Germany, and Europe. By providing access to advanced integration and packaging technologies as well as manufacturing capacity\u2014including for small and medium-sized enterprises, which are often considered \u2018hidden champions\u2019 in their markets\u2014we are making an important contribution to Europe\u2019s autonomy in microelectronics.\u201d<\/p>\n
The path leading up to today\u2019s announcement of the funding decision was long and challenging, emphasized Thuringia\u2019s Minister of Economic Affairs, Colette Boos-John. \u201cX-FAB was among the first German companies whose projects received approval for state aid last year under the European Chips Act. The Free State of Thuringia has closely supported the project from the very beginning and is also making a significant financial contribution.\u201d While the federal government is providing approximately 80.3 million euros, Thuringia is contributing an additional 47.1 million euros. This means the Free State is assuming a significantly higher share of the financing than originally planned and is thus making a decisive contribution to the project\u2019s realization. \u201cFab4Micro is a flagship project for Thuringia and Europe,\u201d Boos-John continued. \u201cThe funding is money well spent. The investment strengthens our technological independence in a strategically crucial market of the future and secures the long-term prospects of Erfurt as a business location.\u201d<\/p>\n
Today\u2019s presentation of the grant approval notice also demonstrates that \u201cThuringia is capable of successfully supporting ambitious industrial projects\u2014from the initial project idea through the European approval processes to the actual investment decision. \u201cTogether with X-FAB, the federal government, and European institutions, all essential prerequisites were established within a relatively short time, so that this forward-looking investment can now be realized in Erfurt,\u201d said the Minister of Economic Affairs.<\/p>\n
The Free State of Thuringia is a long-established hub for microelectronics in Germany. Today, more than 70 companies are based in Thuringia across the entire semiconductor manufacturing value chain\u2014from design and product prototyping through manufacturing and packaging to the mass production of integrated circuits. This is complemented by close ties to sensor technology, optics, and photonics\u2014including the associated specialized machinery\u2014as well as materials science and engineering. X-FAB plays a prominent role in this semiconductor ecosystem as an industrial anchor company and an important partner for SMEs and research institutions.<\/p>\n
Erfurt\u2019s Mayor Andreas Horn said: \u201cX-FAB has been one of our city\u2019s defining industrial companies for decades. The decision to expand in Erfurt sends a strong signal for the entire business and technology hub. It strengthens the industrial base and increases Erfurt\u2019s international visibility as a high-tech hub. Now it is time to harness the momentum generated by this significant investment for the city.\u201d<\/p>\n
X-FAB is a global foundry group that provides a comprehensive range of specialized technologies and design IP, enabling its customers to develop world-leading semiconductor products manufactured at X-FAB\u2019s six wafer fabs in Malaysia, Germany, France, and the United States. With its expertise in analog\/mixed-signal technologies, microsystems\/MEMS, and silicon carbide (SiC), X-FAB serves as a development and manufacturing partner for its customers, primarily serving the automotive, industrial, and medical end markets. X-FAB employs approximately 4,300 people and has been listed on Euronext Paris (XFAB) since April 2017.<\/p>\n
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