The Fraunhofer Institute for Integrated Circuits IIS, headquartered in Erlangen, Germany, conducts world-class research on microelectronic and IT system solutions and services. Today, it is the largest institute of the Fraunhofer-Gesellschaft. 

Research at Fraunhofer IIS revolves around two guiding topics:
In the area of “Audio and Media Technologies”, the institute has been shaping the digitalization of media for more than 30 years now. Fraunhofer IIS was instrumental in the development of mp3 and AAC and played a significant role in the digitalization of the cinema. Current developments are opening up whole new sound worlds and are being used in virtual reality, automotive sound systems, mobile telephony, streaming and broadcasting.

In the context of “cognitive sensor technologies”, the institute researches technologies for sensor technology, data transmission technology, data analysis methods and the exploitation of data as part of data-driven services and their accompanying business models. This adds a cognitive component to the function of the conventional “smart” sensor. The results of this research have been applied in the areas of connected mobility, communication and application solutions for the Internet of Things, digitalization of human sensing, product and material monitoring, and business analytics in supply chains.

More than 1200 employees conduct contract research for industry, the service sector and public authorities. Founded in 1985 in Erlangen, Fraunhofer IIS now has locations in 12 cities. 47% of the budget of 241 million euros in 2023 is financed by funds from industry and 35% from public project funds. The remaining budget is covered by institutional funding from the Fraunhofer-Gesellschaft and other income.