Vishay lands €215M German grant to build 300mm chip fab in Itzehoe
What's the deal? VishayDealroom has a profile for this one. Try Dealroom → has secured a €215 million (≈$240.7 million) grant from the state of Schleswig-HolsteinDealroom has a profile for this one. Try Dealroom → to expand chip production at its site in Itzehoe, Germany. The money will fund a new fab producing 300mm semiconductor wafers.
Why now? The European CommissionDealroom has a profile for this one. Try Dealroom → cleared roughly €214 million in German state aid for the Itzehoe plant in July 2026, part of a €659 million package for four German semiconductor projects. The grant is tied to Europe's wider push to bolster local chip capacity.
What's the endgame? Vishay, the German subsidiary of the US manufacturer, will ramp up production of N- and P-channel power MOSFETs — components used mainly in the automotive industry, as well as in industrial and energy applications. Up to 250 new jobs are expected at the site despite automated production.
The Itzehoe push is part of a broader European expansion drive to localise chip supply. In the same German aid package, Element US$0-US$0 an even larger grant for a silicon carbide wafer plant.
What could go wrong? The grant supports a specific capacity project, not a guaranteed market breakthrough. Its success hinges on demand for power semiconductors.
The signal: At €215 million, Vishay's grant ranks in the top 1% of all-time semiconductor grant rounds tied to US companies. It reflects how governments are using targeted subsidies to rebuild domestic chip manufacturing.
Read more: handelsblatt.com
Image credit: Generated with Gemini
