TSMC Launches €10 Billion German Plant Amid Global Chip War
Taiwan Semiconductor Manufacturing Co. (TSMC) begins construction on its first European plant in Dresden, Germany, with a €10 billion ($11 billion) investment.
The plant is a key part of Europe's strategy to secure semiconductor supplies amid global tensions, particularly between the U.S. and China.
German Chancellor Olaf Scholz, European Commission President Ursula von der Leyen, and TSMC CEO C.C. Wei attended the groundbreaking ceremony.
Germany leads the EU's plan to produce 20% of the world’s semiconductors by 2030, prompted by pandemic-induced supply chain vulnerabilities.
The Dresden plant aims to reduce Europe's dependency on Asian semiconductor imports, crucial for industries like automotive and industrial manufacturing.
The project receives a €5 billion subsidy from the EU, with Germany investing €20 billion in its semiconductor industry, including aid for Intel's plant in Magdeburg.
TSMC’s Dresden plant is part of the broader geopolitical battle over semiconductor production, with implications for U.S.-China relations.
Industry giants Infineon Technologies AG, NXP Semiconductors NV, and Robert Bosch GmbH each hold a 10% stake in the project, highlighting its strategic importance.
The plant strengthens Europe's position in the global semiconductor race, reflecting a trend towards localized chip production to secure technological futures amidst geopolitical uncertainties.