A new ifo study traces the global semiconductor footprint of Germany and the United States. Germany's chip industry reaches about one seventh of the US contribution but earns most of it abroad. Only 26 percent of German firms used AI in 2025, ranking ninth in the EU.
A new ifo study maps the global semiconductor footprint of Germany and the United States. Across the entire value chain, the German chip industry reaches only about one seventh of the US industry's contribution to global consumption and investment demand, and earns most of that contribution abroad. In machinery and motor vehicles, the global contribution is more than five times the domestic one, and the gap is even wider in IT services.
Weak domestic demand for high technology also slows AI diffusion in Germany, says ifo researcher Anita Woelfl. In 2025, just over 26 percent of German firms used AI, ranking Germany ninth in the EU. The study also highlights digital dependence on the United States, which holds about 75 percent of global high-performance computing capacity while Germany holds only a fraction of that.
The study recommends clear, low-bureaucracy rules on data protection and data use along with a stronger venture capital market, which remains weak in Germany. The EU Chips Act 2.0, which puts more focus on demand and the role of startups, moves in the right direction, according to ifo. It remains open how fast these reforms take effect while other regions keep expanding their computing capacity.
What this means for decision-makers
- Check whether your company belongs to the 26 percent of German AI users or still needs to catch up.
- Track the rollout of EU Chips Act 2.0, which aims to boost startups and demand.
- Secure early access to high-performance computing capacity, since about 75 percent of it sits in the US.
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