On 30 October 2026, the federal and state governments handed over a joint Itzehoe grant notification for a total of around €215 million to Vishay Siliconix Itzehoe GmbH. According to the Federal Ministry for Economic Affairs and Climate Action, the federal government is providing the largest share, €172 million, while Schleswig-Holstein is contributing around €43 million. The handover was made by Schleswig-Holstein’s economics minister together with representatives of the federal government.
The funding is intended to expand production capacity at the Itzehoe site. Specifically, it is intended to finance the switch from 200-millimetre to 300-millimetre wafers . According to consistent statements from the ministry and the company, the larger wafer format enables significantly higher yields per production run. Both point to economies of scale that will lower unit costs and improve the security of industrial supply.
Vishay Siliconix and the state government emphasise that the expansion will strengthen supplies of power semiconductors to domestic industry and contribute to Europe’s microelectronics ecosystem. A significant increase in capacity at the site is expected in this context; specific production targets will depend on the ramp-up and supply contracts. According to official information, the grant notification includes milestones and reporting requirements tied to the instalments.
The state government says the project will secure or create around 250 jobs at the site. Opposition representatives called for greater transparency over payment conditions, monitoring mechanisms and the commissioning schedule at the handover. Details of the division of funding, conditions and project implementation are set out in ministerial documents and, according to the government, will be subject to parliamentary scrutiny.
The decision is part of a series of measures to strengthen semiconductor manufacturing in Germany. The federal and state governments aim to reduce dependence on supply chains outside Europe and expand key technologies in Europe . For Itzehoe, the grant notification now issued is the formal starting signal for the next phase of the plant’s expansion. Further progress depends on planning approvals, construction progress and the qualification of new production lines for 300-millimetre wafers. Statements about future production volumes and export shares are estimates by the parties involved and are subject to technical and commercial implementation.
Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).