German state governments are stepping up efforts to secure new semiconductor partners in South Korea after Intel shelved plans to build fabs in Europe, leaving gaps in the region's advanced chip supply chain, according to Korean industry reporting by The Guru.
Delegations from the German states of Saxony and Saxony-Anhalt are scheduled to visit South Korea from February 9 to February 13 to seek strategic partnerships with Korean semiconductor companies. The trip follows Intel's decision to halt local fab construction, which has raised uncertainty over Europe's supply of advanced chips.
According to Germany Trade & Invest (GTAI) and the German Chamber of Commerce and Industry in Korea (KGCCI), the delegation will hold direct meetings with major Korean companies, including a business dinner in Seoul on February 10. The group will also visit the SEMICON Korea exhibition, which opens February 11 at COEX in Seoul, to engage directly with materials, components, and equipment suppliers as part of a supply-chain diversification strategy.
Intel exit prompts shift in strategy
The visit is seen as a strategic response by German state governments following Intel's investment retreat, The Guru reported. Intel recorded a net loss of about KRW4 trillion in the second quarter of 2025 and, as part of restructuring efforts, effectively withdrew plans to build a factory in Magdeburg, the capital of Saxony-Anhalt.
In response, Germany has focused on supporting the establishment of TSMC's European Semiconductor Manufacturing Co. (ESMC) project in Dresden, while intensifying efforts to attract Korean materials, components, equipment, and backend processing companies to help fill the gap left by Intel, according to the report.
Existing Korea-Germany industry links
Major Korean semiconductor companies already have ties to Germany's local research and development ecosystem. Samsung Electronics is working with the Fraunhofer research institute in Dresden on chiplet interface technologies for artificial intelligence and high-performance computing.
Korean suppliers are also active in Germany's semiconductor supply chain. Hanmi Semiconductor continues to supply manufacturing equipment to Infineon Technologies, Germany's largest chipmaker, while EO Technics provides laser marking and cutting equipment for automotive semiconductor production through its German subsidiary. MiCo Ceramics and YC Chem operate at the Korea-Germany Technology Cooperation Center in Dresden, where they conduct joint research with local institutes to develop components tailored for the European market.
During the visit, the German delegation is expected to propose the establishment of dedicated research and development centers or production bases for Korean companies within the Silicon Saxony cluster, along with incentive packages. GTAI plans to use the event to share practical roadmaps to help Korean firms expand their presence across the European market.
EU approves state aid for new German fabs
Separately, the European Commission said on December 11, 2025, that it had approved EUR623 million (approx. US$729.16 million) in German government state aid to support the creation of two new semiconductor manufacturing facilities in Germany, according to Reuters.
The aid includes two grants totaling EUR495 million and EUR128 million. The larger grant will go to GlobalFoundries to support a new semiconductor production facility, while the smaller grant will be provided to X-FAB to support construction of a new open foundry facility at its existing site in Erfurt, Germany.
The Commission said the measures would facilitate the development of first-of-a-kind economic activities in Europe and have broader positive effects on the European semiconductor ecosystem.
Article edited by Jack Wu
