The first integrated circuit was invented by the American Jack Kilby in 1959 - the chip was born. Within two years, Professor Werner Hartmann founded the "Centre for Molecular Electronics Dresden", establishing one of Europe first development centers for microelectronics.Despite political isolation, it proved possible to follow basic technology and circuit engineering in tandem with international developments, and to introduce them in production.

　Work began on the development of ASICs at the beginning of the 1980s. ZMDs strength, the company ability to respond reliably to each customer's specific problems, was soon demonstrated through various customer-specific designs. Chips were designed and engineered for data processing, telecommunications, industrial electronics and medical technology.

　The German state of Saxony undertook firm measures to maintain the microelectronics industry in Dresden, leading to the new foundation in 1993 of the "ZMD Zentrum Mikroelektronik Dresden GmbH". This company was formed as a successor to the R&D center of former East Germany of the same name.