European Commission Approves €76 Million German State Aid for First-of-a-kind Semiconductor Testing Equipment Facility

Estimated reading time: 3 minutes

The European Commission has approved, under EU State aid rules, a €76 million German measure to support QuantumDiamonds GmbH to 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 the European Chips Act and the Commission's 2024-2029 Political Guidelines.

The German measure

Germany notified to the Commission the plan to support QuantumDiamonds' 'IPF-ATEST' project. This will entail the development and manufacturing of advanced metrology and inspection systems for the semiconductor industry based 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 a direct grant of €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 assessment

The Commission assessed the German measure under EU State aid rules, in particular Article 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 the European Chips Act.

The Commission found that:

• The measure facilitates the development of economic activity by 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 a limited impact on competition and trade within the EU. It is necessary and appropriate to ensure the resilience of Europe's semiconductor supply chain. In addition, the aid is proportionate and limited to the minimum necessary based on a proven funding gap;
• The measure has wider positive effects for 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 the EU Chips Act Regulation and 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.

Background

In 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 the Commission'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 the Chips 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 the original Chips Act and 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 measures account for cumulative aid of around €14.2 billion, provided by different Member States, and supporting the manufacturing of different semiconductor technologies and applications.