May 28, 2025
The importance of the location Dresden in semiconductor and microelectronic industry
Dresden, has become a crucial hub for the semiconductor and microelectronics industry over the past few decades. Its importance in this sector is driven by several key factors, including its rich industrial history, highly skilled workforce, strategic location, and the presence of world-class research and development (R&D) facilities.
Below are some of the main reasons why Dresden is so significant to the semiconductor and microelectronics industry:
Dresden has a long-standing tradition of engineering and manufacturing, which dates back to the post-WWII era. The city's industrial base was originally built around sectors like optics, precision mechanics, and electronics, providing a solid foundation for the semiconductor and microelectronics industries.
One of Dresden's most notable claims to fame is the "Silicon Saxony" cluster, a region in the state of Saxony (where Dresden is located) that has become one of Europe's leading semiconductor and microelectronics hubs. Silicon Saxony is home to over 500 companies involved in various stages of semiconductor manufacturing, design, and R&D. The cluster includes leading semiconductor manufacturers, equipment suppliers, and research institutions.
Dresden hosts some of the largest semiconductor manufacturers in the world. The city's role as a manufacturing and innovation center is partly driven by the presence of global giants like GlobalFoundries, which operates a significant semiconductor fabrication plant in Dresden. This plant is a key part of the global supply chain for microchips, particularly for advanced technologies like processors, memory, and power semiconductors.
Additionally, Infineon Technologies has one of its main facilities in Dresden, focusing on power semiconductors. This underscores the region's growing role in the production of specialized microchips used in automotive, industrial, and consumer electronics.
At the moment, taiwanese chip manufacturer TSMC is building a huge fab also in Dresden which is planned to be ready for production approx. 2026.
Dresden is not just a manufacturing hub; it is also a leader in semiconductor research and development. The city is home to prestigious academic and research institutions such as the Dresden University of Technology (TU Dresden), which has a strong focus on electrical engineering, materials science, and nanotechnology.
Moreover, Dresden hosts several research institutes focused on semiconductors and microelectronics, including the Fraunhofer Institute for Integrated Circuits IIS and the Helmholtz-Zentrum Dresden-Rossendorf (HZDR). These research centers collaborate closely with industry players, leading to the development of cutting-edge technologies and helping to position Dresden as a leader in semiconductor technology.
The semiconductor and microelectronics industries require a highly educated and skilled workforce, and Dresden benefits from a talent pool of engineers, scientists, and technicians. This skilled workforce helps drive innovation and maintain high standards in manufacturing processes.
Dresden is well-connected to the rest of Europe and the world, making it an attractive location for companies in the semiconductor industry. The city's proximity to other key industrial centers in Europe, such as Munich and Berlin, allows for easy access to suppliers, customers, and partners. Dresden is also situated near major transportation networks, including highways, railways, and airports, facilitating the movement of materials and finished products.
Additionally, Germany's strong commitment to technological and industrial development, combined with Saxony's regional support for the high-tech industry, has ensured that Dresden continues to receive investments in infrastructure, such as research facilities and manufacturing plants.
The German government and the European Union have recognized the strategic importance of the semiconductor and microelectronics industries. As a result, they have provided substantial financial support for research, development, and the expansion of semiconductor manufacturing capabilities. Dresden has benefitted from this support, which has helped boost the city's status as a key location for semiconductor production.
Dresden has also become a key location for the development of advanced and sustainable semiconductor technologies. With increasing demand for energy-efficient chips and components that are integral to technologies like electric vehicles, renewable energy systems, and IoT devices, Dresden's manufacturers and research institutions are at the forefront of developing the next generation of microelectronic devices that address these challenges.
1. Historical Industrial Hub
Dresden has a long-standing tradition of engineering and manufacturing, which dates back to the post-WWII era. The city's industrial base was originally built around sectors like optics, precision mechanics, and electronics, providing a solid foundation for the semiconductor and microelectronics industries.
2. "Silicon Saxony" Cluster
One of Dresden's most notable claims to fame is the "Silicon Saxony" cluster, a region in the state of Saxony (where Dresden is located) that has become one of Europe's leading semiconductor and microelectronics hubs. Silicon Saxony is home to over 500 companies involved in various stages of semiconductor manufacturing, design, and R&D. The cluster includes leading semiconductor manufacturers, equipment suppliers, and research institutions.
3. Leading Semiconductor Manufacturers
Dresden hosts some of the largest semiconductor manufacturers in the world. The city's role as a manufacturing and innovation center is partly driven by the presence of global giants like GlobalFoundries, which operates a significant semiconductor fabrication plant in Dresden. This plant is a key part of the global supply chain for microchips, particularly for advanced technologies like processors, memory, and power semiconductors.
Additionally, Infineon Technologies has one of its main facilities in Dresden, focusing on power semiconductors. This underscores the region's growing role in the production of specialized microchips used in automotive, industrial, and consumer electronics.
At the moment, taiwanese chip manufacturer TSMC is building a huge fab also in Dresden which is planned to be ready for production approx. 2026.
4. Research and Innovation
Dresden is not just a manufacturing hub; it is also a leader in semiconductor research and development. The city is home to prestigious academic and research institutions such as the Dresden University of Technology (TU Dresden), which has a strong focus on electrical engineering, materials science, and nanotechnology.
Moreover, Dresden hosts several research institutes focused on semiconductors and microelectronics, including the Fraunhofer Institute for Integrated Circuits IIS and the Helmholtz-Zentrum Dresden-Rossendorf (HZDR). These research centers collaborate closely with industry players, leading to the development of cutting-edge technologies and helping to position Dresden as a leader in semiconductor technology.
5. Skilled Workforce
The semiconductor and microelectronics industries require a highly educated and skilled workforce, and Dresden benefits from a talent pool of engineers, scientists, and technicians. This skilled workforce helps drive innovation and maintain high standards in manufacturing processes.
6. Strategic Location and Infrastructure
Dresden is well-connected to the rest of Europe and the world, making it an attractive location for companies in the semiconductor industry. The city's proximity to other key industrial centers in Europe, such as Munich and Berlin, allows for easy access to suppliers, customers, and partners. Dresden is also situated near major transportation networks, including highways, railways, and airports, facilitating the movement of materials and finished products.
Additionally, Germany's strong commitment to technological and industrial development, combined with Saxony's regional support for the high-tech industry, has ensured that Dresden continues to receive investments in infrastructure, such as research facilities and manufacturing plants.
7. Government and EU Support
The German government and the European Union have recognized the strategic importance of the semiconductor and microelectronics industries. As a result, they have provided substantial financial support for research, development, and the expansion of semiconductor manufacturing capabilities. Dresden has benefitted from this support, which has helped boost the city's status as a key location for semiconductor production.
8. Focus on Sustainable and Advanced Technologies
Dresden has also become a key location for the development of advanced and sustainable semiconductor technologies. With increasing demand for energy-efficient chips and components that are integral to technologies like electric vehicles, renewable energy systems, and IoT devices, Dresden's manufacturers and research institutions are at the forefront of developing the next generation of microelectronic devices that address these challenges.
