X-FAB Receives €127.4M in Grants for New Cleanroom in Erfurt
German foundry X-FAB was awarded a grant notification of €127.4M on Monday from the German federal government and the Free State of Thuringia to construct a new cleanroom in Erfurt. This funding supports the expansion of production capacity for microsystems (MEMS) and photonics, key technologies in the European semiconductor ecosystem.
Infrastructure for MEMS and Photonics
The 'Fab4Micro' project involves the construction of a new cleanroom at the Erfurt site, which will begin initial production by the end of 2028. The investment will enable X-FAB to increase its production capacity for micro-electromechanical systems (MEMS), which are used in smartphones, vehicles, and medical devices, as well as for highly integrated microsystems and photonics.
The new facility will also develop manufacturing capabilities for high-performance microsystems using heterogeneous integration technology, which combines multiple electronic and optical functions within a single component. These solutions are required for data centers and optical systems.
Increased Financial Participation by Thuringia
The German federal government is providing approximately €80.3M, while the Free State of Thuringia is contributing €47.1M. This amount represents a significantly higher share than initially planned, enabling the project to materialize. The European Commission approved the funding in December 2025 under the European Chips Act, which aims to strengthen Europe's technological independence in semiconductors.
The project is also expected to create new highly skilled jobs in the field of microsystems. Erfurt has been home to X-FAB's activities for over 30 years and remains a strategic site for the group in the context of strengthening the German and European semiconductor ecosystem.
