[News] European Commission Approves EUR 623M in German State Aid to Support Construction of Two Chip Fabs

On December 11, the European Commission announced that it has approved EUR 623 million in German state aid for GlobalFoundries and X-FAB to support the construction of two new semiconductor manufacturing facilities in Germany.

The aid consists of two grants, valued at EUR 495 million and EUR128 million, respectively. The larger grant will be allocated to GlobalFoundries, a pure-play foundry specializing in contract semiconductor manufacturing for third-party customers. The second one will be provided to X-FAB to support the construction of a new open-access foundry at its existing site in Erfurt, Germany.

The European Commission said in a statement that the measures will help boost economic activity across Europe and noted that the facilities will be first-of-their-kind projects. Furthermore, this initiatives are expected to generate broader positive spillover effects for the European semiconductor ecosystem.

(Photo credit: GlobalFoundries)