AGP Executive Report

Automotive Software: Volkswagen is considering using its China-developed electronic architecture, built with Xpeng, in about three-quarters of future VW, Skoda and Cupra models in Europe. Semiconductors: Infineon plans to invest €1.1 billion in Austria to make gallium-nitride chips at a 300-mm plant, a major expansion of European chip production. Research & AI: Germany and Singapore agreed to deepen industrial AI cooperation and research; meanwhile, researchers tested a 30-qubit German quantum system. Clean Energy: Germany opened a 2.23-gigawatt ground-mounted solar tender and is consulting on offshore wind expansion to 70 gigawatts.

Health Research: A University Medical Center Mainz study found that one session with heated tobacco products measurably impaired blood-vessel function, challenging claims that they are a safer alternative to cigarettes. Semiconductors: Infineon plans to invest €1.1 billion in its Austrian gallium-nitride chip plant, while Volkswagen selected NXP microcontrollers for its next-generation vehicle architecture. Quantum Computing: Germany’s QSolid project has tested a 30-qubit quantum system, a step toward building domestic quantum-computing capacity. Industrial AI: Germany and Singapore agreed to deepen cooperation on AI in industry and research into emerging technologies. Energy Research: A study comparing Germany with the United States, Australia and Japan warns that energy use per unit of economic output can fall even as consumption per person rises, making efficiency alone an incomplete measure of climate progress. Cancer Prediction: Researchers presented machine-learning models that use routine health data to estimate risk across 20 common cancers; performance varied by cancer type.

Industrial Robotics: BMW is testing Hexagon Robotics’ AEON humanoid at its Leipzig plant, following an 11-month trial of a different robot at its U.S. factory. The company says robots will complement existing automation. Quantum Computing: Germany’s QSolid project has tested a 30-qubit quantum system, a step in building domestic quantum-computing capability. Clean Energy: Germany opened a 2.23-gigawatt tender for ground-mounted solar and is consulting on plans to expand offshore wind capacity to 70 gigawatts. Data-Centre Scrutiny: An investigation by German journalist Nico Schmidt found that wording in EU rules keeping data-centre environmental data confidential closely matched a proposal from Microsoft and industry group DigitalEurope. Medical Technology: U.S. drug-delivery firm Aptar Pharma has acquired Munich-based Pulmotree, adding its non-propellant inhaler technology for delivering medicines, including complex biologics, to the lungs.

Defence Technology: Munich-based Helsing unveiled its Contra air-defence system and two interceptor missiles, designed to counter mass drone and cruise-missile attacks. Quantum Research: QSolid has tested a 30-qubit German quantum system, while researchers at Johannes Gutenberg University in Mainz say tiny magnetic skyrmions could enable more energy-efficient, brain-like computing. Solar Power: Germany opened a 2.23-gigawatt ground-mounted solar auction, with bids due by December 1 and a maximum price of 5.53 euro cents per kilowatt-hour. Offshore Wind: Germany is consulting on plans to expand offshore wind capacity to 70 gigawatts. Auto Innovation: Volkswagen’s Jetta brand launched its first electric sedan in China, using driver-assistance technology developed with Chinese partner Horizon Robotics.

Solar and Grid: Rooftop solar approvals in Germany can take 12 days—or just five minutes when the grid has capacity, highlighting how faster, grid-aware processing could speed installations. AI Infrastructure: Infineon and Nvidia are developing gallium-nitride power systems for high-voltage data-centre racks, while German startup Agile plans to make up to 2,000 humanoid robots with Nvidia. Energy Storage: Germany added 8.2 GWh of battery storage in the first nine months of 2026, supporting the shift to renewables. New Energy: A project billed as the world’s first laser-fusion power station is under development in Germany. Separately, Fraunhofer spin-off Clearsun Energy and Saudi firm ENERABIA plan to commercialise concentrated solar technology, targeting gigawatt-scale annual manufacturing within five years. German Industry: Audi plans a $4 billion US factory as Volkswagen restructures and cuts jobs, a sign of how tariffs and market pressures are reshaping German carmaking.

Biotech: BioNTech and Bristol Myers Squibb reported a 36.7% response rate in a Phase 2 trial of their experimental drug pumitamig with docetaxel for advanced lung cancer after earlier treatment failed. Automotive: Audi plans to invest $4 billion in its first US factory, in Georgia, with production targeted for 2031—a major expansion for the German carmaker. Energy Technology: Germany added 8.2 GWh of battery storage in the first nine months of 2026, a sharp rise that could help balance renewable power. Research Cooperation: Scientists at the Arab-German Young Academy’s Bonn conference called for deeper joint work on AI and other global challenges.

Industrial Energy: Everllence will supply a 13.5-megawatt steam turbine-generator for Yara’s Poppendorf fertilizer plant, converting process steam into electricity and improving energy efficiency. Research Partnerships: Germany and India are seeking closer R&D and technology ties, with proposals for joint innovation and partnerships between industry, universities and researchers. Clean Energy: German battery additions rose 91%, while offshore wind substations Darß and Zingst were installed in the Baltic Sea. AI Investment: Amazon plans to invest €16 billion in Germany in 2027, including in data centres and AI. Robotics: Germany’s Agile plans to build as many as 2,000 humanoid robots with Nvidia. Fusion Power: A project billed as the world’s first laser-fusion power station is planned for Germany.

AI Infrastructure: Nvidia CEO Jensen Huang warned in Berlin that Europe’s shortage of computing capacity threatens its AI competitiveness; the continent has about 5% of global AI computing capacity, compared with 75% in the US. Industrial AI: Siemens and Nvidia are using AI to reduce engineering effort, while Infineon and Nvidia plan gallium-nitride power technology for high-voltage data-centre racks. Energy Transition: Germany added 8.2 GWh of battery storage in the first nine months of 2026, a 91% rise; glass-free solar modules are also being developed for vehicles, noise barriers and boats. Investment: Amazon plans to invest more than €16 billion in Germany in 2027, including in data centres and AI, while Nvidia has backed four German startups as part of its €10 billion Europe investment push.

Data-Center Rules: Germany may delay its requirement for data centers to use 100% renewable electricity from 2027 to 2030. A proposed amendment would also apply the rule to fewer sites; it is still under review. Industrial AI: Siemens and Nvidia are deploying AI to cut engineering time in industrial settings. Climate Tech: A new direct-air-capture competence centre has opened at the Port of Hamburg. Energy Storage: German battery additions rose 91% in the first nine months of 2026, reaching 8.2 gigawatt-hours. Cybersecurity: A critical PHP flaw triggered millions of hacking attempts and took thousands of German websites offline; many have since returned after patches. Pharma Supply: A German manufacturer’s supply halt during a product upgrade has contributed to insulin shortages reported across several regions.

Industrial AI: Schaeffler and German robotics firm Wandelbots are building a physical-AI platform for factories, targeting automation-cost savings of up to 40% over equipment lifecycles. Manufacturing: A survey finds 61% of manufacturers have expanded or plan to expand existing capacity, but 55% have no plans for new production sites in Germany. Pharma: Germany’s research-based drugmakers forecast production to fall 2.2% and real sales 1.8% this year, reversing last year’s export surge amid US tariff uncertainty. Tech Investment: Amazon plans to invest more than €16 billion in Germany in 2027, including in data centres and AI; SAP, meanwhile, passed €10 billion in quarterly revenue and raised its 2026 outlook. Climate Science: Researchers estimate Europe’s summer heat caused more than 50,000 excess deaths, with climate change responsible for about two-thirds.

Cybersecurity: PHP flaws triggered emergency patching and temporary shutdowns of German government sites; services are now coming back online, but Amazon says attack attempts began before fixes were released. AI Investment: Amazon plans to invest €16 billion in Germany in 2027, including in data centres and AI, as Berlin and Nvidia push industrial AI adoption. Quantum Computing: Researchers at Jülich simulated a 104-qubit system on Europe’s first exascale supercomputer, testing a method that could cut physical qubit needs by 90%. Climate Research: A study estimates summer heat killed more than 50,000 people across 854 European cities, with about two-thirds of deaths linked to human-caused climate change. Research Ties: Germany and Mongolia held a joint science forum in Berlin, exploring projects in climate, engineering, materials and health.

Cybersecurity: A critical PHP flaw triggered shutdowns across Germany and worldwide; many German government sites are back online after an emergency patch, though some public services remain disrupted. Cancer Research: Mainz-based BioNTech and Gilead will test pumitamig with Gilead’s breast-cancer drug in a global Phase 3 trial for advanced triple-negative breast cancer. AI in Manufacturing: Siemens and NVIDIA are developing AI tools at Siemens’ Erlangen factory to prepare and improve PCB inspections before production begins. Brain Science: Researchers at the German Primate Center in Göttingen found that differences in neural progenitor cells help explain why marmoset brains have fewer folds than human brains. Investment and AI: Amazon plans to invest more than €16 billion in Germany in 2027, including in data centres and AI, while the German government has also agreed an AI partnership with NVIDIA. Industrial Efficiency: KBR will modernise ammonia plants in Germany and Austria to reduce gas use and emissions.

AI and Industry: Germany’s partnership with Nvidia aims to bring AI into manufacturing, as Jensen Huang urges German firms to move faster. Amazon also plans to invest more than €16 billion in Germany in 2027, including in data centres and AI. Business: SAP reported 26% growth in its cloud backlog and raised its revenue outlook, while keeping its operating-profit forecast unchanged. Climate Research: Forest soils in southwestern Germany absorbed about 3% more methane annually over up to 24 years of measurements, a finding that challenges assumptions about this small climate sink. Public Investment: The European Commission approved Germany’s final €6 billion recovery-fund payment, completing its €30.3 billion plan for clean transport, energy upgrades and digital public services. Biotech: Merck agreed to acquire UK-based Silence Therapeutics for about $1.3 billion, adding an RNA-based drug candidate to its pipeline.

Investment: Amazon plans to spend more than €16 billion in Germany in 2027, including €4.8 billion to expand its Frankfurt cloud region as demand for AI grows. Industrial AI: Germany’s Nvidia partnership aims to bring AI into manufacturing, while demonstrations at GTC Berlin showcased autonomous-driving technology from companies including Mercedes-Benz, Volkswagen and Einride. Biotech: Merck agreed to acquire UK gene-silencing firm Silence Therapeutics for about $1.3 billion, adding to its drug-development pipeline. Ageing Research: Researchers at the University of Bonn and University Hospital Bonn reprogrammed blood cells into neural stem cells, finding that molecular markers of ageing were reset in the lab. The work offers a way to study cellular ageing, not proof of rejuvenation in people. Energy Storage: Fraunhofer researchers reported that silicon-rich battery cells retained more than 83% of capacity after 1,000 charging cycles, a potential step toward longer-lasting batteries.

Amazon’s German Bet: The company plans to invest more than €16 billion in Germany in 2027, including €4.8 billion to expand AWS cloud and AI infrastructure near Frankfurt, plus spending on satellite internet and robotics-equipped logistics. AI Push: Germany has struck a partnership with Nvidia on industrial AI, as CEO Jensen Huang urges manufacturers to adopt the technology. A Siemens-Nvidia pilot in Erlangen reportedly cut engineering effort by 85% and time to market by 40%. Biotech Deal: Darmstadt-based Merck is buying UK gene-silencing firm Silence Therapeutics for about $1.3 billion, adding an RNA-based treatment to its rare-disease pipeline. Mars Mission: Japan’s MMX probe launched to collect samples from Phobos and return them to Earth; Germany’s DLR is among the mission partners.

Industrial AI: Germany has signed a strategic partnership with Nvidia to develop advanced “physical AI” models, aiming to bring AI into manufacturing and build a European industrial ecosystem. Investment: Amazon plans to invest more than €16 billion in Germany in 2027, including €4.8 billion to expand its Frankfurt cloud region and AI infrastructure, plus a Berlin robotics and AI research lab. Biotech: Darmstadt-based Merck is buying UK gene-silencing specialist Silence Therapeutics for $1.3 billion, adding RNA medicines to its pipeline. Innovation gap: An Ifo study finds high-tech sectors account for just 20% of German manufacturing R&D, versus 68% in the US, and links a greater high-tech research share with stronger growth. Robotics: Metzingen-based NEURA Robotics is partnering with Austria’s NXAI to give cognitive robots stronger memory capabilities. Energy transition: German grid operator Netze BW has cut approval times for eligible small rooftop solar systems from around 12 days to five minutes. Skills: Germany faces a shortfall of about 148,000 skilled workers in infrastructure, energy transition and digitalization occupations.