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By Asma Adhimi
The European Commission has approved €288 million in German State aid for two semiconductor supply chain projects aimed at strengthening Europe’s chip manufacturing capabilities. The funding will support new facilities from Carl Zeissand Zadient Materials Europe GmbH, targeting advanced lithography equipment and ultra-pure silicon carbide materials.
The move is part of the EU’s wider effort to build resilience and reduce dependence on overseas semiconductor suppliers under the European Commission Chips Act strategy.
For eeNews Europe readers, the announcement highlights continued public investment in Europe’s semiconductor ecosystem, particularly in areas beyond chip fabs themselves. It also underlines growing opportunities for equipment makers, materials suppliers and research partnerships across the region.
Germany will provide €222 million to Zeiss for its ‘HNA@SCALE’ project in Oberkochen, Baden-Württemberg. The facility will manufacture the next generation of extreme ultraviolet (EUV) optical columns used in EUV lithography systems produced by ASML.
EUV lithography remains essential for manufacturing leading-edge semiconductors used in applications including AI systems, high-performance computing and autonomous driving.
According to the Commission, the project represents a first-of-a-kind facility in Europe and would likely not proceed at the same scale without public support.
A separate €66 million grant will support Zadient’s ‘Sic-Pro’ project in Bitterfeld, Saxony-Anhalt. The company plans to build a factory producing ultra-pure silicon carbide (SiC) semiconductor source materials.
The project includes a circular production system designed to recover and reuse process gases during manufacturing. The Commission said the approach is novel within Europe and could improve material quality, energy efficiency and long-term production costs.
Both companies have also committed to broader ecosystem goals, including collaboration with universities and research institutes, specialised workforce training and prioritising customer orders during semiconductor supply shortages.
The Commission said the projects align with the objectives of the European Chips Act and support Europe’s long-term semiconductor supply security. Zeiss and Zadient are also seeking recognition as Integrated Production Facilities under the Chips Act framework.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition at the Commission, said: “Chipmaking requires highly sophisticated production equipment and materials with special characteristics such as high purity. The German measures approved today strengthen the EU’s position in the semiconductor value chain and enable innovation to underpin Europe’s technological leadership and resilience in this field.”
The approvals are the twelfth and thirteenth semiconductor aid decisions made under the Chips Act principles, bringing total approved public support across Europe to around €13.9 billion.
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