2023: Bavaria is #1 Location for FDI in Germany, with U.S. leading global investments

According to Germany Trade & Invest (GTAI), Bavaria remained a leading destination for foreign investment in 2023, attracting numerous international companies. Key factors included its diverse business landscape, strong R&D capabilities, and a wealth of talent. Notable investments included Meta’s (Menlo Park, CA) plans to hire 100–150 staff for AI initiatives, and Apple’s €1 billion investment to double its chip design presence, which is now its largest in Europe. The Cupertino, CA-based tech giant now will employ over 2,000 engineers.

Additionally, companies like Nano Dimension (Waltham, MA) and Maeve Aerospace (The Netherlands) chose Bavaria for their European headquarters, citing its technological advantages and skilled workforce. Maeve, for instance, will develop a hybrid aircraft in Oberpfaffenhofen, leveraging local expertise.

Bavaria’s emphasis on innovation is underscored by significant investments from companies such as Siemens, which earmarked €1 billion for the development of an industrial Metaverse. The state’s well-established educational institutions and a robust patent application rate—120% above the European average—demonstrate its attractiveness for future-oriented companies.

The Free State has not only continued to attract significant investments but also benefited from the leading role of the United States’ foreign direct investment (FDI) in Germany. As Europe’s largest economy, Germany remains a prime destination for U.S. investors, with American firms driving a substantial share of foreign investment, reflecting the country’s favorable business environment and economic stability. U.S. investment is crucial for Bavaria’s thriving tech ecosystem, with ompanies like Apple and Meta leading the charge in innovation and job creation.

For more details from Germany Trade & Invest (GTAI), you can check the full article here and for more information on Germany’s investment climate , you can refer to the full report from the U.S. Department of State here.