Germany is seeking to become a leading hub of semiconductor manufacturing. With its world-class automobile industry now going through digitalization and electrification, the country has also become a spearhead of Europe’s quest to regain semiconductor global leadership. In March, Intel unveiled its plan to invest at least US$19 billion into a leading-edge fab in the city of Madgeburg, located in the German state of Lower Saxony, while another federal state – Saxony – already hosts Europe’s largest chip ecosystem, and aspires to attract foundries like TSMC to set up local presence. GlobalFoundries, which operates a 300mm fab (Fab 1) in Saxony’s capital Dresden, also disclosed in 2021 its intention to invest US$1 billion for Fab 1 expansion over the next two years. The momentum is nevertheless challenged by factors both internal and external.