QuantumDiamonds, a German company whose technology allows semiconductor companies to test out products and detect any defects, announced a 152 million euros ($178 million) investment plan for a new site in Munich.

The Munich site is seen as key in terms of the European Union's plans to produce its own technology and software components, and for the EU to keep up with the United States and China in the global tech sector, added QuantumDiamonds.

"This investment is a strategic commitment to European technology sovereignty," said Kevin Berghoff, CEO and co-founder of QuantumDiamonds, in a statement.

Construction is due to start on the Munich site in the first quarter of next year, and the project is expected to create 200 high-salary roles in place when the facility will open, added Berghoff.

Industry group SEMI Europe had recommended last month that the EU should incentivise investments by computer chip equipment, materials and design companies to ensure the EU does not lag further behind U.S. and Asian rivals in the tech field.

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Reporting by Sudip Kar-Gupta

Editing by Jan Strupczewski

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