GlobalFoundries announced plans to invest €1.1 billion to expand its semiconductor manufacturing capacity at its Dresden, Germany facility under the project name SPRINT. The expansion will increase production to over one million wafers per year by 2028, establishing the site as Europe’s largest semiconductor manufacturing facility and a cornerstone of the region’s chip independence.
Supported by the European Chips Act
The investment will be backed by the German federal government and the State of Saxony under the European Chips Act framework, with EU approval expected later this year. The move underscores Europe’s strategic goal to strengthen semiconductor supply chain resilience and ensure technological sovereignty in critical chip sectors.
Reinforcing Germany’s Role in Global Semiconductor Leadership
Chancellor Friedrich Merz hailed the SPRINT project as a “commitment to Germany’s industrial and innovation strength”, emphasizing the investment as a major step toward European sovereignty in microelectronics.
Saxony’s Minister President Michael Kretschmer called the billion-euro investment a “clear commitment to Silicon Saxony,” home to Europe’s most vibrant microelectronics ecosystem.
Focus on High-Demand Sectors and Future AI Applications
The expanded facility will produce highly differentiated semiconductor technologies featuring low power consumption, embedded secure memory, and advanced wireless connectivity. These chips are critical for automotive, IoT, defense, and critical infrastructure applications — sectors rapidly advancing with physical AI and quantum computing innovations.
Enhancing Supply Chain Security and European Competitiveness
GF’s Dresden expansion will feature end-to-end European data flows and manufacturing processes to meet stringent semiconductor security standards.
Tim Breen, CEO of GlobalFoundries, said: “Our Dresden expansion is a strategic step to strengthen Europe’s semiconductor resilience. By scaling our global footprint, we’re supporting secure supply chains and enabling the next wave of innovation as physical AI becomes reality.”
Industry Leaders Endorse GF’s Strategic Expansion
The announcement drew strong endorsements from major European industry partners:
Philipp von Hirschheydt, CEO, AUMOVIO: Called the investment “a milestone in strengthening the resilience of the European automotive industry.”
Michael Budde, President Mobility Electronics, Bosch: Praised GF’s role in “empowering next-generation mobility with safety and connectivity.”
Jochen Hanebeck, CEO, Infineon: Said the expansion “boosts supply chain resilience and strengthens the Saxony ecosystem.”
Rafael Sotomayor, CEO, NXP Semiconductors: Highlighted that the investment “enhances Europe’s role as a hub for advanced semiconductor manufacturing.”
Cedrik Neike, Siemens AG: Emphasized that GF’s investment “builds a foundation for sustained digital transformation in Europe.”
Hector Gonzalez, CEO, SpiNNcloud: Stated that local manufacturing proximity will “accelerate the commercialization of neuromorphic AI technologies.”
A Strategic Commitment to ‘Made for Germany’
GlobalFoundries has been a key participant in the “Made for Germany” initiative, reinforcing its long-term commitment to the country. Since 2009, the company has invested over €10 billion in its Dresden fab, making it one of Germany’s largest industrial investments to date.
Driving Europe’s Next Wave of Chip Innovation
As Europe accelerates its semiconductor strategy, GlobalFoundries’ Dresden expansion positions the region at the forefront of AI-enabled chip design, quantum technology, and next-generation computing. The SPRINT project strengthens Silicon Saxony’s global relevance and supports Europe’s ambition to become a powerhouse for advanced semiconductor production.
Baburajan Kizhakedath
