Commission approves €76 million German State aid for first-of-a-kind semiconductor testing equipment facility - The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting. com European Union News -
Commission approves €76 million German State aid for first-of-a-kind semiconductor testing equipment facility The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting. com European Union News -
Home»European Union News»Commission approves €76 million German State aid for first-of-a-kind semiconductor testing equipment facilityJune 23, 2026byThe Sting's Team(Credit: Unsplash)This article is brought to you in association with theEuropean Commission. The European Commission has approved, under EU State aid rules, a €76 million German measure to supportQuantumDiamonds GmbHto set up a new facility for the production of semiconductor testing equipment in Munich. The measure will contribute to strengthening the EU’s position and autonomy in the semiconductor value chain, in line with the objectives set out in theEuropean Chips Actand theCommission’s 2024-2029 Political Guidelines. The German measureGermany notified to the Commission the plan to support QuantumDiamonds’ ‘IPF-ATEST’ project. This will entail the development and manufacturing ofadvanced metrology and inspectionsystems for the semiconductor industrybased on novel quantum sensors, enabling high-resolution and 3D testing of modern chips. It will be the first production site for novel semiconductor metrology and inspection systems based on quantum sensing in the EU. The aid will take the form of adirect grantof €76 million. Under the measure, QuantumDiamonds agreed to:ensure broader impact with positive effects on the EU semiconductor value chain by ensuring the security of supply and increasing qualified workforce;strengthen collaborations with universities and research institutions;fulfil orders on a priority basis in case of a supply shortage;create opportunities for SMEs by making part of the facility available to early-stage, high-tech companies, start-ups and academic laboratories;share with Germany potential project-related profits beyond current expectations. The Commission’s assessmentThe Commission assessed the German measure under EU State aid rules, in particularArticle 107(3)(c)of the Treaty on the Functioning of the EU (‘TFEU’), which enables Member States to grant aid to facilitate the development of certain economic activities subject to certain conditions, and based on the principles set out in theEuropean Chips Act. The Commission found that:the measurefacilitates the development of economic activityby creating manufacturing capacity for semiconductor testing equipment in Europe;the facility is first-of-a-kind in Europe;the aid has an ‘incentive effect‘, as without public support, the company would not carry out the investment in Europe;the measure has alimited impacton competition and trade within the EU. It isnecessaryandappropriateto ensure the resilience of Europe’s semiconductor supply chain. In addition, the aid isproportionateandlimitedto the minimum necessary based on a proven funding gap;the measure haswider positive effectsfor the European semiconductor ecosystem and contributes to strengthening Europe’s security of supply. The beneficiary will collaborate with start-ups, SMEs and research institutions. QuantumDiamonds is also applying for its facility to be recognised as a so-called Integrated Production Facility under theEU Chips Act Regulationand therefore commits to comply with all obligations linked to this status. On this basis, the Commission approved the German measure under EU State aid rules. BackgroundIn November 2024, Germany published a call for proposals for innovative investment projects in the European semiconductor value chain. Today’s decision concerns the fifth project pre-selected under this call. In theCommission’s Communication ‘A Chips Act for Europe’, the Commission recalled that investments in new advanced production facilities in the semiconductor sector are important to safeguard the EU’s security of supply and supply chain resilience, while generating significant positive impacts to the wider economy. The Commission recognised several factors relevant for a case-by-case assessment directly under Article 107(3)(c) TFEU. On 3 June 2026, the Commission adopted a new proposal for theChips Act 2. 0, which introduces new measures to further boost the chips industry, reduce strategic dependencies and support advanced chip production in the EU. The Chips Act 2. 0 builds on the progress made by theoriginal Chips Actand aims to reinforce current European strengths (including mainstream chips) and build capacity in cutting-edge semiconductor technologies. This will allow the EU to maintain its position as an indispensable player in the value chain, while strengthening its resilience, and reducing strategic dependencies and supply chain vulnerabilities. Today’s approval is the fourteenth decision by the Commission based on these principles. Past approved measuresaccount for cumulative aid of around €14. 2 billion, provided by different Member States, and supporting the manufacturing of different semiconductor technologies and applications. For more informationThe non-confidential version of the decision will be made available under the case number SA. 120180 in theState aid registeron the Commission’scompetition websiteonce any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in theCompetition Weekly e-News. 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