The European Commission has approved €288 million in German state aid for two new manufacturing facilities linked to the semiconductor supply chain, including projects by Carl Zeiss and Zadient Materials Europe GmbH.
Germany will provide €222 million to Carl Zeiss to build a site in Oberkochen, Baden-Württemberg, to manufacture equipment used in chip production, the Commission announced on Wednesday.
The project — called “HNA@SCALE” — is intended to introduce and industrialise the next generation of extreme ultrav.
EUV is a technology used in chipmaking to produce the most advanced semiconductors, and the optical columns are required for the next generation of EUV lithography machines made by Dutch firm ASML, according to the Commission. It said the Zeiss support will be provided as a direct grant.
A further €66 million will go to Zadient Materials Europe GmbH to set up a factory in Bitterfeld, Saxony-Anhalt, to produce ultra-pure silicon carbide (SiC) for use as a semiconductor source material.
Silicon carbide is used in chipmaking, particularly in power electronics, and the planned plant is described as a first-of-a-kind facility in Europe.
Conditions tied to the funding
Zeiss and Zadient have agreed to steps including collaborating with universities and research institutions and developing specialised training to expand the pool of skilled workers, the Commission said.
The companies also committed to prioritise orders in the event of a supply shortage.
The Commission declared that it assessed the measures under EU state aid rules and approved them on the basis that the facilities are first-of-a-kind in Europe and that the funding is limited to what is necessary.
“Chipmaking requires highly sophisticated production equipment and materials with special characteristics such as high purity,” executive vice-president Teresa Ribera stated.
Germany published a call for proposals in November 2024 for innovative investment projects in the European semiconductor value chain, and the latest approvals cover the third and fourth projects pre-selected under that call.
