Business · Companies · 10 hrs ago
Vishay to expand chip production in Itzehoe with major investment
US chipmaker Vishay plans a major expansion at its production site in Itzehoe, in the German state of Schleswig-Holstein.
The company will build another factory to make 300-millimetre silicon wafers, larger than the 200-millimetre wafers it currently produces there.
Wafers are used to make chips and other semiconductor parts, and larger wafers can yield more components.
Vishay has not disclosed the exact investment; a regional lawmaker put it at about €1 billion, while the company described it as a high three-digit million-euro sum.
Schleswig-Holstein has awarded about €215 million in public funding for the site.
Vishay says the expansion could create up to 250 new jobs, even with automated production.
The project matters because chips are used in products such as cars and computers, and Vishay says support is needed to keep European production competitive and strengthen supply independence.
Vishay plans to expand chip production at its site in Itzehoe, Schleswig-Holstein, by building another factory for 300-millimetre silicon wafers.
The company announced an investment in the high hundreds of millions of euros but did not disclose an exact amount.
Andreas Hein, a CDU state parliament economic policy spokesperson, said the investment was about one billion euros.
Schleswig-Holstein’s economy minister presented a funding notice for about 215 million euros for the site.
Vishay says the expansion could create up to 250 jobs despite automated production.
- Who
- Vishay, a US semiconductor manufacturer, and its German subsidiary.
- What
- Vishay plans to expand production in Itzehoe and make 300-millimetre wafers at a new factory. The company says the project could create up to 250 jobs.
- When
- The investment was announced on 30 October 2026.
- Where
- Itzehoe, in Schleswig-Holstein, Germany.
- Why
- Larger wafers allow more chips and components to be made per wafer. Vishay and state officials also cite the importance of semiconductor production and supply-chain independence in Europe.
This story does not have two clearly opposing sides.
The European Commission approved state aid for four semiconductor plants in Germany, including funding for the Itzehoe project.
Vishay announced its planned investment, and Schleswig-Holstein’s economy minister presented a funding notice of about 215 million euros.
- Planned investment
- High hundreds of millions of euros; exact amount not disclosed by Vishay
- Estimate cited by Andreas Hein
- About €1 billion
- Funding notice
- About €215 million
- New wafer size
- 300 millimetres
- Potential new jobs
- Up to 250
- Existing wafer size
- 200 millimetres in Itzehoe
4 sources
What people are saying
Supporting is dramatically important because costs in Europe are much higher than in competing countries, for example in Asia.
The state gets high technology. We get a degree of sovereignty and the opportunity for innovation.
Over the past years we have seen supply chains interrupted because a ship is stuck somewhere or because there are wars and crises. And that makes it all the more important that we also have these technologies in Europe.