Europe needs control over its own technology
Europe needs more than just AI. It also needs control over its own technology. With this message, the industry association Silicon Saxony is actively contributing to the European debate on the development of AI gigafactories. Supported by the Saxon state government, the association is pursuing the goal of "thinking about the entire European value chain from the outset" - for example in the environment of the consortium around the Schwarz Group in Heilbronn.
"This is not about an exclusive settlement in Saxony, but about a contribution to strengthening European industrial competence as a whole," the statement reads. Silicon Saxony is calling for the development of AI gigafactories to consistently focus on "components, e.g. in chip design, and technologies that are already available and can be manufactured in Europe today".
At the same time, the association is "expressly offering to cooperate with the German government in order to pool expertise and make concrete progress towards Europe's technological sovereignty".
Use billion-dollar investments strategically
Europe is about to invest billions in AI infrastructure - but Silicon Saxony warns: "The aim is to ensure that the billions invested in building a European AI infrastructure do not bypass the European semiconductor and technology location."
"The AI Continent Action Plan is attracting increasing interest. It is crucial that we think and politically coordinate projects such as the EURO Stack, the Next Generation EU Chips Act and the European AI strategy together," explains Frank Bösenberg, Managing Director of Silicon Saxony.
And he continues: "Anyone planning AI gigafactories in Europe should also consistently rely on chip components that are already being produced in the European single market today. Otherwise, not only will value creation flow away, but new strategic dependencies will also arise. With average investment sums of three to four billion euros per location, this is not a marginal technical issue, but a core task of industrial policy."
Dependency as a competitive risk
The public funding of large industrial projects should be viewed in a new light. For example, "the planned Intel subsidy in Magdeburg amounting to 9.9 billion euros was questioned with reference to the unclear demand in Europe" - but the demand for high-performance chips is now increasing rapidly.
"It cannot be that Europe pays and the world supplies," says Bösenberg. "It is therefore time to rethink industrial policy. Not just as a funding instrument, but as an active value creation policy in the European interest. Saxony is ready to take responsibility for this."
Silicon Saxony remains a stable growth driver
Despite economic uncertainty, the Saxon semiconductor industry remains robust. Total employment in the microelectronics and ICT sector was stable at around 81,000 employees as of September 30, 2024. "After two years of above-average employment growth, the industry is now showing a linear development again, comparable to the long-term trend of the last 20 years," explains Prof. Dr. Frank Schönefeld, Chairman of the Silicon Saxony Executive Board. "This is not a weakness, but an expression of stability in a difficult environment."
The forecast remains positive: "The forecast of over 100,000 employees by 2030 remains unchanged. It is supported by the continuing high demand for skilled workers in production, development and software," said Schönefeld.
Silicon Saxony Day 2025 shows international appeal
With over 1,000 participants, Silicon Saxony Day 2025 at Dresden Airport was the largest industry gathering to date. The number of guests doubled compared to the previous year. In addition to industry, science and politics, eleven international business delegations were represented, including NY Creates from the US state of New York.
"The expansion in the north of Dresden is progressing successfully. The foundations for further growth have been laid," says Frank Bösenberg. But: "With a view to the production start-ups planned for 2027, however, a new phase is beginning for the region, a phase in which strategic decisions at European level are becoming increasingly important."
"The numerous investments by medium-sized companies along the semiconductor value chain confirm Saxony's attractiveness as a location," says Bösenberg. "If you want to secure value creation and expand Europe's technological sovereignty, you have to think about this development at an early stage."
