German states Saxony and Saxony-Anhalt are stepping up efforts to attract South Korean semiconductor companies, pitching their regions as strategic entry points into Europe as the continent accelerates its push for technological sovereignty.
At an investment briefing in Seoul, officials highlighted the region’s central location, logistics infrastructure and highly skilled workforce, urging Korean chipmakers and suppliers to tap into what they described as Europe’s largest semiconductor cluster.
“Semiconductors are no longer a background technology. They have moved to the forefront of economic and geopolitical strategy,” said Pascal Misoph, project lead for semiconductors and microelectronics at Saxony Trade & Invest.
He said the shift toward electric and software-defined vehicles, along with growing demand from robotics and aerospace industries, is fueling Europe’s appetite for advanced chips.
“This creates a unique window of opportunity, especially for South Korean companies, to position themselves strategically within the European market,” Misoph said.
Saxony promoted its “Silicon Saxony” cluster centered in Dresden as Europe’s largest microelectronics hub. The region accounts for roughly one-third of Europe’s chip production and hosts about 3,650 companies and more than 81,000 workers across the semiconductor and ICT value chain.
Major players in the area include GlobalFoundries, Lam Research and Tokyo Electron. Taiwan’s TSMC is also building its first European fabrication plant in Dresden through a joint venture with Bosch, Infineon and NXP, in a project valued at about 10 billion euros ($11 billion). Roughly half of the investment is expected to be covered by German government subsidies, with production targeted for 2027.
Misoph said Saxony’s central location allows companies to stay close to major automakers, suppliers and research institutions across the continent.
“For Korean investors, this means entering an environment where industrial relationships already exist and can be activated almost immediately,” he said. “Market access, logistics and collaboration opportunities naturally reinforce each other.”
Officials from neighboring Saxony-Anhalt also promoted their region as an emerging high-tech base.
Robert Franke, managing director at IMG Sachsen-Anhalt, said the state offers efficient public administration, a highly qualified workforce and close cooperation between industry and research institutions.
“The foundations are already in place for success stories such as those of Daimler Truck, Novartis and South Korea’s IDT Biologika,” Franke said.
He highlighted a 1,100-hectare High-Tech Park near the state capital of Magdeburg as one of Europe’s largest development projects, aimed at attracting global semiconductor and advanced manufacturing investments.
The site had been selected for a planned 30-billion-euro Intel megafab, though the project was later scrapped amid weak market demand and the company’s internal restructuring.
Katharina Viklenko, director of Germany Trade & Invest’s Korea office, said Germany’s semiconductor market is projected to exceed $20 billion this year. She added that the government offers extensive subsidies under the EU Chips Act, and Korean companies investing in Germany could qualify for similar incentives.
The outreach event, hosted by the Korean-German Chamber of Commerce and Industry, was part of a five-day visit to Korea by a delegation from the two German states and Germany Trade & Invest to promote semiconductor investment and partnerships.
herim@heraldcorp.com
