Switzerland discusses with Rheinmetall to set up a $250m microchip manufacturing plant
Switzerland, known for its neutrality and milk chocolate, appears to be preparing to play big in the global semiconductor race. Bloomberg reports that the country's scientific institutes, including the prestigious ETH Zurich, are in talks with major defence companies such as Rheinmetall AG and Thales SA to set up a new $250m microchip factory on the outskirts of Zurich.
Here's What We Know
The project, called Chip FabLab, is focused on producing dual-use chips for civilian and defence applications. It is planned that the factory will start work in 2028, and financing will be completed by the end of 2025. The project participants hope to attract funds from government agencies and large industrial companies, including defence companies.
According to the presentation, the future facility will cover about 4,000m² and will be the largest chip production facility in Switzerland. Yes, it will be inferior to the scale of factories in Germany or Asia, but the developers are betting on niche production with a high degree of customisation - for the needs of military systems, drones and even quantum technologies.
The project is overseen by the industry association Swissmem, as well as scientific institutions like EMPA (Federal Laboratory for Materials Science). The ETH confirms that it is working on "digital security topics", which is of particular interest to defence companies. At the same time, the documentation emphasises that the companies will be able to share expensive production equipment and premises with controlled conditions - this will significantly reduce costs.
Rheinmetall has so far refrained from commenting, while Thales headquarters said they do not plan to invest, but the situation may change - negotiations are still underway.
The context is telling: Europe's military budgets are breaking historical records amid global instability, and technological isolation (including Chinese and US bans on exports of sensitive components) makes chip manufacturing a security issue, not just a business.
Source: Bloomberg
