Germany is funding a major upgrade to a power-semiconductor fab that supplies the auto industry. On Oct. 30, Schleswig-Holstein economy minister Claus Ruhe Madsen handed Vishay Siliconix Itzehoe GmbH a grant notice for about €215 million. Madsen acted on behalf of both funders, the federal economy ministry and the state.

The money

  • electrive.net reports €172 million from the federal government and €43 million from Schleswig-Holstein.
  • The aid is granted under the European Chips Act. heise notes that the EU Commission approved it in July.
  • Vishay has announced a "high three-digit million" investment without giving an exact figure. heise reports that CDU state MP Andreas Hein put it at around €1 billion.

The project

Vishay will produce its next generation of silicon power MOSFETs in Itzehoe and more than double its capacity there by moving from 200mm to 300mm wafers. heise says the switch gives 125% more theoretically usable chip area per production run, and that the output is aimed at the automotive industry. electrive.net says the chips can be used in e-mobility, for example in driver-assistance systems and battery management.

Quotes

"Secure access to chips for our industry is a geopolitical question of the highest relevance," said Frank Wetzel, state secretary at the federal economy ministry, according to the state's press release (translated from German). Markus Keil, Vishay's head of wafer manufacturing, told heise (translated) that funding is "dramatically important because costs in Europe are significantly higher than in competing countries, for example in Asia."