QuantumDiamonds GmbH has unveiled plans to invest €152m in a new production hub in Munich, positioning the site as the world’s first manufacturing facility dedicated to next-generation quantum-based semiconductor inspection systems.
The move signals a major step in Europe’s effort to strengthen its role in a global chip market increasingly defined by advanced packaging, artificial intelligence, and geopolitical pressure.
The facility is expected to attract substantial public backing from both the German federal government and the state of Bavaria through instruments linked to the European Chips Act.
Once operational, it will transition QuantumDiamonds from pilot-scale deployments into full industrial production, anchoring a critical segment of the semiconductor value chain in Europe.
Bavarian Minister for Economic Affairs, Hubert Aiwanger, emphasised the significance of the facility: “The new site in eastern Munich sends a strong signal for the future of our microelectronics ecosystem.
“With its cutting-edge analysis technologies, QuantumDiamonds shows how vital innovation is for Europe’s semiconductor competitiveness.
“The planned support from the federal and Bavarian governments is an investment in high-quality jobs, technological sovereignty, and our region’s progress.”
Rising chip complexity creates an inspection bottleneck
Explosive growth in AI workloads has pushed chipmakers toward denser, more complex architectures such as 2.5D and 3D integration.
While these designs deliver performance gains, they also introduce a growing problem: declining yields. As failure mechanisms become harder to detect, conventional semiconductor inspection tools struggle to keep up, leading to higher costs, constrained supply, and slower innovation cycles.
This inspection bottleneck has become one of the most pressing challenges facing the semiconductor industry. Non-destructive fault isolation inside advanced packages remains particularly difficult, as many defects are invisible to thermal imaging or X-ray analysis once chips are fully assembled.
Quantum sensing brings a new approach to chip testing
QuantumDiamonds’ technology addresses this gap by applying quantum sensing to semiconductor inspection.
Its systems use nitrogen-vacancy centres in diamond to detect tiny magnetic fields generated by electrical currents. By mapping these fields with micrometre precision, engineers can visualise current paths inside complex chip packages within seconds, without damaging the device.
This capability enables layer-specific analysis of through-silicon vias, microbumps, and chiplets, offering insights that are critical for debugging heterogeneous integration.
As advanced packaging becomes standard across AI accelerators, mobile processors, and automotive electronics, such inspection methods are increasingly viewed as essential rather than optional.
From proof of concept to global demand
The investment plan follows a period of strong commercial validation. QuantumDiamonds has completed proof-of-concept projects with nine of the world’s ten largest semiconductor manufacturers, demonstrating the applicability of its systems across leading-edge fabs.
Initial installations have already taken place in Europe, with additional deployments scheduled in the United States and Taiwan in early 2026.
This rapid uptake reflects surging demand for more capable semiconductor inspection solutions as manufacturers race to improve yields on advanced nodes. Scaling production in Munich is intended to meet this demand while keeping core know-how and manufacturing expertise within Europe.
Strengthening Europe’s semiconductor position
Europe currently accounts for roughly 10% of global semiconductor production, despite being home to many of the world’s largest chip consumers.
The European Chips Act aims to double that share by 2030, reducing exposure to supply-chain shocks and geopolitical risk. QuantumDiamonds’ expansion aligns closely with this objective by reinforcing Europe’s position in high-value equipment rather than commodity manufacturing alone.
The announcement comes alongside other major investments, including a €1.1bn chip manufacturing expansion planned by GlobalFoundries in Dresden, underscoring Germany’s growing ambition to shape the global semiconductor landscape.
Building long-term industrial leverage
By localising production of advanced semiconductor inspection systems, the Munich project is expected to retain critical value-chain steps, cultivate specialised skills, and enhance Europe’s technological sovereignty.
Early backing from European innovation programmes helped lay the groundwork for this scale-up, while anticipated Chips Act support is set to accelerate the transition to volume manufacturing.
As chip complexity continues to rise, the success of the semiconductor industry may increasingly depend on breakthroughs in inspection and testing. QuantumDiamonds’ €152m bet suggests that Europe intends to play a central role in delivering those breakthroughs.
