Why Austria is one of Europe’s leading semiconductor hubs

With 72,000 employees and €27 billion in value added, Austria ranks among Europe’s top four microelectronics hubs and is number one in per capita terms. The AI boom and investments – for example from AT&S, Lam Research and Infineon – are boosting the sector.

No artificial intelligence without microchips: data centers, vehicles, robotics and energy systems rely on advanced microelectronics. Austria is a European heavyweight in this market. 

With around 72,000 employees in nearly 300 companies and value added of EUR 27 billion, the country ranks among the top four locations in Europe in absolute terms, according to figures compiled by the FEEI industry association in 2025. Relative to population size, Austria even ranks number one in terms of value added, employment and corporate R&D expenditure. 

Key technology in Austria’s industrial strategy 

“Chips, electronic components and systems” are among the nine key technologies of the Austrian Industrial Strategy 2035Austrian Industrial Strategy 2035 (), for which around EUR 2.6 billion will be available under the RTI Pact through 2029. The European Chips Act also enables member states to provide financial support to companies in the microelectronics industry. 

Specifically, the Austrian Federal Government is providing:

• up to EUR 2.8 billion to build innovative production capacities under the EU Chips Act. A first project, receiving EUR 227 million in funding from the Republic of Austria, is already being implemented at ams OSRAMams OSRAM () in Styria; for Infineon’s investmentInfineon’s investment () in high-volume production of gallium nitride chips on 300-millimeter wafers, Austria is providing EUR 319 million under the European Chips Act to strengthen technological sovereignty.
• around EUR 400 million for participation in the two IPCEIs (Important Projects of Common European Interest) Microelectronics I and Microelectronics II;
• a further EUR 80 million for the next IPCEI on advanced semiconductor technology (IPCEI AST). The selection process is being managed by FFG, with the project scheduled to start in early 2027.

What makes Austria a strong location 

Austria has an internationally connected microelectronics sector with significant expertise in research, development and production. Austria-based companies such as AT&S, EV Group and IMS Nanofabrication operate alongside international corporations such as InfineonInfineon (), NXPNXP (), Lam ResearchLam Research (), Intel and Apple. EV Group and IMS Nanofabrication are two Austrian hidden champions whose highly specialized equipment plays a key role in global semiconductor production: EV Group is one of the technology leaders in wafer bonding and lithography equipment, while IMS is the global market leader in multi-beam mask writers used to manufacture cutting-edge chips. Together, these companies cover key parts of the value chain, from chip design, sensor technology and power electronics to IC substrates, wafer bonding, mask writers and production equipment.

The industry also focuses on specialization rather than mass production. For example, around 90 percent of the global market for security chips used in passports is accounted for by Austrian companies. 

Research as a location advantage

Austria’s industry also benefits from close links with science: the research initiative Silicon Austria Labs (SAL), founded by Graz University of Technology and with locations in Graz, Linz and Villach, AIT Austrian Institute of Technology, Joanneum Research, Fraunhofer Austria, Linz Center of Mechatronics, Pro2Future and CEST, as well as Graz University of Technology, TU Wien and JKU Linz, universities of applied sciences, HTLs and clusters such as Silicon Alps provide cutting-edge research and skilled professionals. 

When it comes to location decisions, Austria stands out for its established expertise in application-oriented research, a strong funding system and its highly qualified workforce. 

These topics were also at the heart of the ABA CEO Round Table MicroelectronicsABA CEO Round Table Microelectronics () held in Vienna in October 2026, attended by Minister of Economic Affairs Wolfgang Hattmannsdorfer, high-ranking representatives of the industry and the media, as well as ABA Managing Director René Tritscher. 

EBSCON 2026: Europe’s chip industry meets in Graz

Austria is also a sought-after conference destination, as EBSCON 2026EBSCON 2026 () in Graz demonstrated: with more than 500 participants from 24 countries, the conference organized by Silicon Alps Cluster set a new attendance record. Under the motto “Crossroads,” the focus was on how Europe can translate innovations into industrial value creation more rapidly. AT&S, Infineon, NXP and Lam Research highlighted the importance of southern Austria. As part of EBSCON Week, delegations from Sweden, the Netherlands and Japan also visited companies in Carinthia and Styria. 

 

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