GlobalFoundries plans to invest billions to expand chip production in Dresden

The expansion, known as Project SPRINT, is expected to be supported by the German government and the Free State of Saxony under the European Chip Act, with EU approval for the entire program expected later this year. This investment underlines Saxony's role as a major hub for semiconductor manufacturing and innovation and reinforces Europe's strategic goal of supply chain resilience.

As part of the project, the facility will be upgraded to provide end-to-end European processes and data flows for critical security requirements in the semiconductor industry.

During his visit to GF Dresden on October 28, German Chancellor Friedrich Merz welcomed the planned investments in Germany: "The SPRINT project is a commitment to Germany as a location for industry and innovation - and above all to the sovereignty of our country and Europe. The investment in chip production in Dresden is a signal that Germany wants to play an active role in shaping the development of the global semiconductor market. Germany already plays a leading role in microelectronics in Europe. With the national microelectronics strategy, the federal government is setting the course to further expand this strength."

Saxony's Minister President Michael Kretschmer added: "The further expansion of semiconductor production here at GlobalFoundries is a clear commitment to a unique location. The billion-euro investment is further good news for Silicon Saxony, Europe's most important microelectronics location, and demonstrates the attractiveness and dynamism of the cluster that has grown here. This will not only strengthen Saxony's economy - Germany and Europe will also benefit from it. Because more chips produced here also means more German and European sovereignty and technological independence in this key industry. Germany's economic vulnerability due to excessive dependencies is currently demonstrated by the example of chip manufacturer Nexperia."

The new production capacity will focus on GF's highly differentiated technologies - with critical performance features such as low power consumption, embedded secure memory and wireless connectivity - which are essential to meet European chip demand in the automotive, Internet of Things (IoT), defense and critical infrastructure sectors. These sectors are being rapidly transformed by the emergence of physical AI technologies, for which GF's semiconductors are essential. The investment will also support continued innovation in next-generation computing architectures and quantum technologies that will become mainstream over the next decade.

"The recent disruptions in the automotive sector highlight how fragile global chip supply chains really are. Our planned expansion in Dresden is another step in GF's strategy to directly address these challenges and fulfill our commitment to support Europe's need for secure supply chains and differentiated technologies," said Tim Breen, CEO of GlobalFoundries. "By expanding our manufacturing capabilities in Europe, the US and around the world, GF is strengthening its role as a resilient and trusted partner for customers in critical industries and laying a foundation for the next wave of innovation as physical AI becomes a reality."

GF recently joined the "Made for Germany" initiative, an alliance of companies that are committed to Germany for the long term through major industrial investments. GF has invested more than 10 billion euros in its Dresden site since 2009, one of the largest industrial investments in Germany.