Some truly Saxon innovations include the first locomotives built in Germany, the six-cylinder engine and car gear sticks placed in the central console. Strong industrial sectors still form the backbone of Saxony as a business location. The most profitable are the automotive industry, mechanical engineering and plant construction and the electrical engineering / microelectronics sector. Saxony also boasts high growth potential and innovation in the fields of environmental engineering, energy management and the life sciences.


Strong industrial sectors form the backbone of Saxony as a business location.

Mechanical engineering

Saxony is known as the cradle of German mechanical engineering. For some 200 years there has been global demand for the mechanical engineering systems produced in Saxony, including textile- and tool-making machines and printing presses. With some 45,000 workers in roughly 1,000 companies applying their innovative skills to the “factory of the future”, mechanical engineering remains one of Saxony’s most important industrial sectors.

Life sciences – biotechnology and medical technology

Saxony is one of Germany’s most dynamic life sciences regions. Some 450 biotechnology, medical technology and pharmaceutical companies cooperate closely with more than 30 research institutions. They focus on the fields of regenerative medicine, diagnostics, molecular bioengineering, bioinformatics, continuous monitoring, implants and prostheses.

Saxony, car country

With five production plants run by Volkswagen, BMW and Porsche, plus roughly 780 suppliers to the industry, Saxony is one of Germany’s top five automotive locations. The automotive industry is Saxony's most profitable sector, employing more than 95,000 workers. It makes up one quarter of industrial revenue and more than a third of foreign sales.

Silicon Saxony

Saxony is home to the largest microelectronics / ICT cluster in Europe. One in three microchips produced in Europe is “Made in Saxony”. Some 3,900 companies with a total of 62,000 employees do business in Saxony, covering every link in the ICT value chain. In Dresden, GLOBALFOUNDRIES, Infineon and – from 2021 – Bosch operate some of the most up-to-date and largest semiconductor fabs in the world.

Environmental engineering and energy management

With almost 17,000 employees in some 700 companies, environmental engineering and energy management also play a significant role in Saxony’s economy. Based on Saxony's long tradition as a mining region, local companies and research institutions have outstanding expertise in mine site and contaminated land remediation, and in renovating sewage systems. Saxony is considered one of the world’s top locations when it comes to renewable energy sources, increasing energy efficiency, energy storage and, above all, resource efficiency.

Photo credits: Saxon Economic Development Corporation
Michael Lange and Jürgen Männel