Taiwan’s TSMC wants to build its first European chip factory in Germany

TSMC plans to start construction of the plant in the second half of next year, with production scheduled to start by the end of 2027.

Taiwanese chipmaker Taiwan Semiconductor Manufacturing (TSMC) plans to build its first European factory in Germany. The company said today it plans to invest in the Dresden plant along with Bosch, Infineon, and NXP.

Opening in the second half of next year

TSMC plans to start construction of the plant in the second half of next year, with production scheduled to start by the end of 2027. The company says the plant will create around 2,000 jobs. TSMC will own 70 percent of the plant, while Bosch, Infineon, and NXP will have 10 percent stakes.

TSMC, the world’s largest contract chipmaker, is counting on strong support from the European Union and the German government. According to Handelsblatt, Berlin has promised to support the construction of the plant with five billion euros.

A welcome decision

German Economy Minister Robert Habeck welcomed TSMC’s decision. He added that the government will support the project under a European standard known as the Chips Act, which aims to increase chip production in the EU.

The Taiwanese company has been in talks with the state of Saxony to build the plant from 2021. TSMC said the final investment decision will depend on the extent of public support.

Source Czech Press Office

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