Frankfurt (Oder) misses billions of investment for Chipfabrik!

Frankfurt (Oder) misses billions of investment for Chipfabrik!

Frankfurt (Oder), Deutschland - Today, an important event reached the news situation in Frankfurt (Oder). As the rbb , the Ferroelectric Memory Company (FMC) will not be built in the city. Instead, the company decided to implement its project, which weighs four billion euros in Magdeburg. Mayor Claus Junghanns (CDU) confirmed the decision on July 18, 2025.

The investments planned by FMC would not only have boosted the regional economy in Frankfurt, but could also have significantly strengthen the capacities in the semiconductor industry. With the requested state funding of 1.3 billion euros, negotiations around the work had an important basis, but apparently the location factors were not convincing enough.

historical perspective and current challenges

Frankfurt (Oder) was an important semiconductor location during the GDR period, but at the end of the turn, the city lost a great deal of industrial relevance. In the past there have been some promising settlements, such as the solar industry, which failed after the initial boom. These setbacks throw a shadow on the economic development of the city.

The decision of FMC to implement the full potential of microelectronics in other cities also illustrates the strategic importance of the industry in Europe. The Federal Minister of Economics states that the strengthening of European semiconductor production is essential for many industries, especially for automotive engineering and medical technology. The geopolitical area of tension and trade restrictions make local production capacities essential.

The future of the semiconductor industry

Brandenburg plans to develop a 46 hectare industrial area on the federal highway 12 in order to strengthen the location in the competitive environment. The country will support the development with 13 million euros, and the water supply for the planned project is already secured. In addition, wind and solar parks in the area ensure sustainable energy supply.

Despite the disappointment about the lost deal with FMC, the location factors in Frankfurt (or) could attract new investors in the future. The Leibniz Institute for Innovative Microelectronics (IHP) represents a further plus point because it acts as a recognized research center. The city can now learn from this situation and take measures to improve its investment opportunities.

Overall, it should be noted that the market for semiconductors in Europe, despite the challenges, is still very popular. The demand in the industrial sector, especially in automotive construction, will probably be twice as high by 2030, which makes the necessary expansion of production capacities even more urgent. Therefore, the development of a strong location in Frankfurt (Oder) is of particular importance.