200 million euro chip revival in Oudenaarde

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Belgium’s last chip factory may rise again. Thema Foundries plans to invest €200 million in Oudenaarde, creating 500 jobs and transforming the former BelGaN site into Europe’s first large-scale photonic chip production and service center.

Thema Foundries has unveiled plans to revive the former BelGaN semiconductor site in Oudenaarde, which went bankrupt last year. The new investor, a recently established Belgian company backed by Singaporean and Cypriot holdings, will focus on producing photonic chips — a technology that uses light rather than electrons to transmit and process data.

The group promises €200 million in investments and 500 new jobs. The Oudenaarde facility will be transformed into a state-of-the-art semiconductor hub, offering not only chip production but also cutting, packaging, testing, and research & development services.

Photonic chips are seen as a breakthrough for energy-hungry data centers, enabling faster and far more energy-efficient processing. “Data center energy demand is a global challenge. Photonic chips can help break this pattern,” the company said.

Still, challenges remain. High upfront costs, the need for specialized machinery, and a shortage of skilled workers make success uncertain. 

If successful, Oudenaarde would host Europe’s first full-scale photonic chip production center — a strategic boost for the continent’s semiconductor ambitions.

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