German federal government and Free State of Thuringia support key project for the future of Thuringia’s microelectronics location with Euro 127.4 million
A grant notification for Euro 127.4 million has been presented in Erfurt to X-FAB MEMS Foundry GmbH by Thuringia’s Minister President Mario Voigt, Thuringia’s Minister of Economic Affairs Colette Boos-John, and Erfurt’s Mayor Andreas Horn. The funding provided by the German federal government and the Free State of Thuringia will support the expansion of manufacturing capacity through the construction of a new cleanroom at the Erfurt site. The “Fab4Micro” project is among the most significant industrial investments made in Thuringia in recent years. In December 2025, the European Commission gave the green light for the funding. The project is an important component of the European Chips Act (ECA), through which Europe aims to strengthen its technological independence in semiconductors.
The new facility is scheduled to begin initial production by the end of 2028. This will enable X FAB to expand its production capacity for micro-electro-mechanical systems (MEMS), highly integrated microsystems, and photonics. MEMS are systems that comprise electronic, sensing and mechanical elements at the micro- and nanometer scale, used for example in smartphones, vehicles, medical devices, and other applications. The investment will also establish new manufacturing capabilities for high-performance microsystems that use heterogeneous integration technology to combine numerous electronic and optical functions in a single component, required for data centers or optical systems. The Fab4Micro project will also create new highly skilled jobs in the field of microsystems.
“The deliberate investment decision in favour of the Erfurt site shows that the Free State of Thuringia is perceived as a competitive industrial location and offers excellent conditions for investment. This further establishes Thuringia as a major microelectronics and semiconductor hub 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. Those who want to be independent in the technologies of tomorrow must also be able to develop and produce them themselves. That is precisely what this investment in Erfurt stands for.”
“We greatly appreciate the commitment of the Federal Government and the Free State of Thuringia in enabling our Fab4Micro project. This funding marks an important milestone in transforming our Erfurt site into X-FAB’s microsystems hub. As the place where X-FAB’s story 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 X FAB Group. “It supports our strategy of specialization and diversification while further strengthening a site already recognized as a center of excellence for microsystems technology. The new cleanroom will enable us to expand capacity and capabilities step by step, aligned with customer demand and participation. 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 to industrialize innovative microsystems and photonics solutions at scale and further strengthen Erfurt’s role in the semiconductor ecosystem across Thuringia, Germany, and Europe. By providing access to advanced integration and packaging technologies as well as manufacturing capacity — including for small and medium-sized companies that are often hidden champions in their markets — we are making an important contribution to Europe’s sovereignty in microelectronics.
”The path leading up to today’s presentation of the grant notification was long and demanding, emphasized Thuringia’s Minister of Economic Affairs Colette Boos-John. “X FAB was among the first German companies whose projects received state aid approval under the European Chips Act last year. The Free State of Thuringia has closely supported the project from the very beginning and is also making a substantial funding contribution.” While the German federal government is providing around Euro 80.3 million, Thuringia is contributing a further Euro 47.1 million. This means that the Free State has taken on a significantly higher share of the funding than originally planned, thereby making a decisive contribution to enabling the project to be implemented. “Fab4Micro is a flagship project for Thuringia and Europe,” Boos-John continued. “The funding is money well invested. The investment strengthens our technological independence in a strategically decisive future market and secures the long-term prospects of the Erfurt site.
”Today’s presentation of the grant notification also demonstrates that “Thuringia is capable of successfully supporting demanding industrial projects — from the initial project idea and the European approval processes through to the actual investment decision. Together with X-FAB, the German federal government and the European institutions, all the key conditions were put in place within a comparatively short period of 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 microelectronics location in Germany. Today, more than 70 companies across the entire value chain of semiconductor manufacturing are based in Thuringia — from design and product prototyping to manufacturing and packaging, through to volume production of integrated circuits. These are complemented by close links to sensor technology, optics and photonics, including related special-purpose machinery, as well as to materials science and materials engineering. X-FAB plays an outstanding 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 the defining industrial companies in our city for decades. The decision to expand in Erfurt sends a strong signal for the entire business and technology location. It strengthens the industrial base and increases Erfurt’s international visibility as a high-tech location. The task now is to leverage the momentum generated by this major investment for the city.”