The Madrid Region: A Strategic Hub for U.S. Investment in Microelectronics and Semiconductors

Madrid has become a consumption and integration node for next-generation microelectronics—from high-performance chips to advanced optical solutions and testing equipment—creating a direct pull effect for new investments

The Community of Madrid has emerged as one of Europe’s most attractive destinations for U.S. investment in microelectronics and semiconductors, combining cutting-edge scientific infrastructure, a robust business ecosystem, and public policies geared toward technological innovation. While the United States continues to lead the world in chip design and manufacturing—with investments exceeding $600 billion since 2020—Madrid is positioning itself as the ideal European partner to expand this technological revolution.

Madrid concentrates Spain’s microelectronics core through the Cluster for Technological Innovation and Talent in Semiconductors (CITT), promoted by the madri+d Foundation, which brings together the region’s six public universities, seven IMDEA Institutes for Advanced Studies, and more than twenty business groups. This public-private ecosystem fosters knowledge transfer, talent development, and the execution of strategic projects in chip design, manufacturing, and packaging.

The region hosts over 45 technology companies specializing in microelectronics and semiconductors, including KDPOF, a pioneer in high-speed optical communications; ArXiTEC Critical Systems, focused on critical electronic systems; Sensia Solutions, dedicated to advanced thermal sensors; and Alcyon Photonics, specialized in integrated photonics for optical communications and computing. These companies reflect the innovative capacity and technological diversity that characterize Madrid’s industrial fabric.

Madrid’s scientific strength is supported by leading research centers such as the Institute of Optoelectronic Systems and Microtechnology (ISOM-UPM), part of Spain’s national ICTS MICRONANOFABS network, and IMDEA Nanoscience, devoted to research in nanoscience and applied nanotechnology. In October 2024, the Community of Madrid announced the creation of a Regional Network of Clean Rooms for Micro-Nano Fabrication, which will allow universities and companies to access internationally certified facilities for prototype development and microfabrication processes—further reinforcing the region’s scientific and technological leadership.

The Madrid Region is also a member of the European Semiconductor Regions Alliance (ESRA), an interregional platform that serves as a partner to the European Commission in implementing the European Chips Act and developing resilient value chains. This membership strengthens Madrid’s connections with other leading European regions, facilitates access to consortiums, and promotes the identification of projects aligned with continental priorities.

In this context, the connection with the United States is clear. On one hand, one of the main drivers of demand for Madrid’s microelectronic and semiconductor products comes from the cloud regions of major U.S. tech companies established in the region—such as Google Cloud, IBM, and Microsoft—as well as the proliferation of data centers that support them. The Community of Madrid currently hosts 41 data centers and has seen a +89.3% increase in installed capacity over the past four years. U.S. firms such as Prime, Digital Realty, and Iron Mountain also play a key role in this growth. As a result, Madrid has become a consumption and integration node for next-generation microelectronics—from high-performance chips to advanced optical solutions and testing equipment—creating a direct pull effect for new investments.

At the same time, several U.S. companies linked to the semiconductor value chain have already established a presence in the region: Microchip Technology (with an office in Madrid providing application engineering support for Spain and Portugal), 3M (critical materials and consumables), Keysight Technologies, and NI–National Instruments (testing and measurement equipment for laboratories and validation lines).

These investments underscore Madrid’s appeal to U.S. companies in the microelectronics sector and its value chain. The PERTE Chip—approved by the Government of Spain in 2022 with a €12.25 billion budget through 2027—seeks to position Spain as a key global player in the semiconductor industry. The program supports research, design, and production capacity, complementing the European framework established by the EU Chips Act, which is expected to mobilize more than €43 billion in public and private investment by 2030.
In the academic sphere, the region boasts a solid knowledge base. The Polytechnic University of Madrid (UPM) leads the UPM-Indra Chair in Microelectronics (CAUPIME), focused on circuit design, new materials, and chip testing. The Carlos III University of Madrid (UC3M) hosts the EPIQ University-Industry Chair, dedicated to electronic circuits and integrated photonics, and participates in European projects such as EPICPack, focused on the assembly and packaging of electronic and photonic devices.

Both institutions are part of the “Chip Chairs” initiative promoted by Spain’s Ministry of Digital Transformation, aimed at accelerating the training of semiconductor specialists.

Thanks to this combination of talent, infrastructure, and public support, Madrid stands as Spain’s epicenter—and one of Europe’s key hubs—for U.S. investment in microelectronics. Its close ties with leading American companies and stakeholders consolidate the region’s position as a strategic transatlantic partner, jointly driving technological competitiveness and industrial autonomy in one of the most critical sectors for the global economy.

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