Gradiant has completed the installation of advanced water and wastewater systems for a major semiconductor manufacturing facility in Dresden, Germany, supporting one of Europe’s largest chip manufacturing investments and reinforcing the region’s efforts to strengthen semiconductor supply chains.
The new facility, backed by an investment of approximately €5 billion, doubles manufacturing capacity at the customer’s existing Dresden site and is expected to create around 1,000 skilled jobs. The project forms part of Silicon Saxony, Europe’s largest semiconductor cluster, and has received roughly €1 billion in public funding through initiatives including the European Chips Act and the Important Project of Common European Interest (IPCEI).
The expansion comes as Europe seeks to reduce its dependence on overseas chip production by increasing domestic manufacturing capacity for semiconductors used in artificial intelligence, electric vehicles, renewable energy and industrial automation.
The Dresden facility will manufacture 300-millimetre wafers for power semiconductors as well as analogue and mixed-signal chips. These devices play a critical role in AI data centres, electric vehicles, power grids, renewable energy systems and industrial equipment.
Gradiant supplied the site’s ultrapure water and water recovery systems, infrastructure regarded as essential in semiconductor fabrication. Chip manufacturing requires extremely high-purity water during wafer processing and rinsing, where even microscopic contaminants can affect production quality, reduce manufacturing yields and increase operational costs.
The company said its systems are designed to maintain consistent water quality while ensuring the reliability required for continuous semiconductor production.
As part of the project, Gradiant also deployed rinse-water recovery systems that capture water from selected manufacturing processes and recycle it for reuse elsewhere within the facility. The approach is intended to reduce overall water consumption while improving operational resilience.
The plant will operate primarily using industrial water rather than drinking water, helping preserve municipal water resources. Internal recycling processes are expected to enable production water to be reused multiple times, with the facility targeting a 45% water recycling rate by 2033.
Gradiant said it completed its scope of work three months ahead of schedule, reflecting close coordination with the customer and project partners. Delivering ahead of schedule is particularly significant in semiconductor manufacturing, where delays to supporting infrastructure can affect equipment installation and production timelines.
“Semiconductors are the foundation of the AI economy, but their potential is ultimately constrained by the availability of water,” said Prakash Govindan, Chief Executive Officer of Gradiant. He said the company has spent more than a decade developing technologies that enable advanced industries to secure reliable and efficient water supplies for manufacturing.
Philipp Sausele, Managing Director of Gradiant Europe, represented the company at the facility’s official inauguration in Dresden earlier this month. He said the project strengthens Europe’s semiconductor manufacturing capabilities while supporting a more digital and energy-efficient economy.
The project adds to Gradiant’s growing portfolio of semiconductor water infrastructure projects globally. As chipmakers expand production to meet rising demand driven by AI, electrification and industrial digitalisation, water management has become an increasingly critical part of semiconductor manufacturing.
Modern fabrication plants consume millions of litres of ultrapure water each day, making efficient treatment, recycling and wastewater recovery central to both production reliability and sustainability goals.
