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Funding for 300mm Wafer Production in Itzehoe Handed Over to Vishay
Chips2 min read
Chipmaker Vishay will invest in its plant in Itzehoe, in northern Germany, to make larger 300 mm silicon wafers. The state government handed over funding of about 215 million euros for the project.
What happened
Vishay, a US chipmaker, plans to spend a "high three-digit million" amount on its site in Itzehoe, in the German state of Schleswig-Holstein. A local politician says the total is about one billion euros. The state economy minister, Claus Ruhe Madsen, handed over a funding notice worth about 215 million euros. The German unit will start making 300-millimeter wafers in a new factory there. Up to 250 new jobs may be created, even though the plant is highly automated.
Key numbers
- Investment: a "high three-digit million" euro sum, which a state politician puts at about 1 billion euros
- Public funding: about 215 million euros from the federal government and the state
- New jobs: up to 250
- Wafer size: moving from 200 mm to 300 mm gives 125% more usable chip area per production run, in theory
- The EU Commission has already approved the aid
What is a wafer?
A wafer is a thin, round slice of silicon. Many chips are made on one wafer at the same time. A bigger wafer holds more chips, so it can make production cheaper. Vishay will use the large wafers to make power MOSFETs. These are parts that control high electric currents and voltages. They are used in cars, factories, and computers for AI.
Why it matters
The company says public money is needed to stay competitive, because building chips costs much more in Europe than in Asia. The minister says Europe needs its own chip production, so that supply chains are less likely to break during wars, crises, or shipping problems. The FDP opposition welcomed the investment but criticized the government for not informing parliament early enough about the funding.
What to watch
- Whether the full investment amount is officially confirmed
- When the new 300 mm production line starts and how many of the 250 jobs are filled
- How the EU Commission and German states handle other chip projects in NRW, Hesse, and Bavaria
Glossary
- Vishay
- A US company that makes electronic parts, including power chips, and runs this plant in Itzehoe.
- Wafer
- A thin, round slice of silicon on which many computer chips are made at once.
- FDP
- A German political party; its state parliament group criticized how the government shared funding information.