X-Fab is set to invest up to €400 million in a new chip manufacturing facility in Erfurt, boosting Europe’s microelectronics industry and creating 100 jobs ahead of its 2028 opening, supported by significant public funding.
X-Fab is set to begin work on a new chip factory in Erfurt, marking one of the largest industrial investments in Thuringia in recent years. According to the company, the ground-breaking takes place on Monday, with the project intended to expand the site into a centre for microsystems technology. The investment is expected to total between €300 million and €400 million, backed by public support from the German federal government and the state of Thuringia.
The new facility is being developed under the name Fab4Micro and is tied to the European Chips Act, the EU policy framework designed to reduce Europe’s dependence on imported semiconductors, especially from Asia. X-Fab said the grant notification amounted to €127.4 million in total, of which €80.3 million comes from the federal government and €47.1 million from Thuringia. The company and regional authorities say the money will help finance a cleanroom facility for micro-electro-mechanical systems, highly integrated microsystems and photonics.
X-Fab’s decision reflects strong demand in its existing Erfurt operation, which has been running close to capacity. The company said its microsystems and photonics business was its fastest-growing division in the second quarter, with revenue rising 14%. The new plant is expected to create around 100 additional jobs and to begin initial production by the end of 2028. PORR, the construction group selected for the project, said the building will include about 3,500 square metres of cleanroom space, alongside an office wing, and that construction is due to finish in July 2028.
The project also underscores Erfurt’s long industrial history in microelectronics. X-Fab traces its roots to the city, where semiconductor production has deep ties to the former East German electronics combine. Today the group operates factories in Germany, Malaysia, France and the United States, with about 4,000 employees worldwide and roughly 800 based in Erfurt, which serves as its operational headquarters. Unlike mass-market chipmakers such as GlobalFoundries in Dresden, X-Fab focuses on specialised semiconductors made to customer order.
Disclaimer: This content is intended for informational purposes only. Readers are advised to exercise their own judgement, conduct due diligence, or consult a qualified expert before acting on any information provided.
