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.
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—such as those required for data centers or optical systems. The Fab4Micro project will also create new, highly skilled jobs in the field of microsystems.
“The 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’s position as a major center for microelectronics and semiconductors in the heart of Europe and secures high-quality production and jobs in Thuringia,” said Thuringia’s Minister President Mario Voigt. “At 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.”
“We 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’s microsystems center. As the place where X-FAB’s history began more than 30 years ago, Erfurt holds special significance for our company—and this investment is a strong commitment to its future,” 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’ 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.”
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’s role in the semiconductor ecosystem in Thuringia, Germany, and Europe. By providing access to advanced integration and packaging technologies as well as manufacturing capacity—including for small and medium-sized enterprises, which are often considered ‘hidden champions’ in their markets—we are making an important contribution to Europe’s autonomy in microelectronics.”
The path leading up to today’s announcement of the funding decision was long and challenging, emphasized Thuringia’s Minister of Economic Affairs, Colette Boos-John. “X-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.” 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’s realization. “Fab4Micro is a flagship project for Thuringia and Europe,” Boos-John continued. “The 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.”
Today’s presentation of the grant approval notice also demonstrates that “Thuringia is capable of successfully supporting ambitious industrial projects—from the initial project idea through the European approval processes to the actual investment decision. “Together 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,” said the Minister of Economic Affairs.
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—from 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—including the associated specialized machinery—as 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.
Erfurt’s Mayor Andreas Horn said: “X-FAB has been one of our city’s 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’s international visibility as a high-tech hub. Now it is time to harness the momentum generated by this significant investment for the city.”
About X-FAB
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’s 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.
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Photo: X-FAB
