Depends on what you call "State of the art"? Cutting edge logic processes are a domain of Intel, TSMC, Samsung, GF and the incumbents in China.
But for everything else, like IoT, Sensors, Power, you can find plenty of companies and subsidiaries in Germany: Infineon, Bosch, GlobalFoundries, NXP, Dialog, Elmos, Melexis, Xfab, AMS, IDT (ZMDi), TI, Intel, TDK (Micronas) and many smaller ones.
But for everything else, like IoT, Sensors, Power, you can find plenty of companies and subsidiaries in Germany: Infineon, Bosch, GlobalFoundries, NXP, Dialog, Elmos, Melexis, Xfab, AMS, IDT (ZMDi), TI, Intel, TDK (Micronas) and many smaller ones.