Finance
EU approves German state aid to support chip factories
Published by Global Banking and Finance Review
Posted on December 11, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 11, 2025
1 min readLast updated: January 20, 2026
The EU approved €623 million in German state aid for new semiconductor facilities by GlobalFoundries and X-FAB, enhancing Europe's chip sector.
BRUSSELS, Dec 11 (Reuters) - The European Commission on Thursday said it had approved 623 million euros ($729.16 million) in German government aid to support the creation of two new semiconductor manufacturing facilities in Germany.
The aid consists of two grants, worth 495 million euros and 128 million euros, respectively.
The bigger grant will go to GlobalFoundries, a semiconductor foundry specialised in the manufacturing of semiconductor devices exclusively for other companies. The second grant will go to X-FAB, to support construction of a new open foundry facility at its existing site in Erfurt, Germany.
The Commission said in a statement that the measures facilitated the development of economic activities in Europe where the facilities would be first-of-a-kind. It added that the measures would have wider positive effects for the European semiconductor ecosystem.
($1 = 0.8544 euros)
(Reporting by Louise Breusch Rasmussen, editing by Bart Meijer)
The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
A semiconductor manufacturing facility is a plant where semiconductor devices are produced, involving processes like wafer fabrication, assembly, and testing.
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