Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip maker, has announced its plans to construct a new factory in Dresden, Germany. The project is part of a joint venture with leading European companies and will involve investments exceeding 10 billion euros ($11 billion). This significant investment reflects the European Union’s efforts to enhance self-sufficiency in semiconductor production.
TSMC’s joint venture partners include Infineon Technologies, Robert Bosch, and NXP Semiconductors. The collaboration aims to establish a state-of-the-art chip factory to support the growing demand in the automotive and industrial sectors. The total investments will cover equity injections, debt borrowing, as well as support from the European Union and the German government.
Under the agreement, TSMC will hold a majority stake of 70% in the joint venture, which will be known as the European Semiconductor Manufacturing Co. Meanwhile, the three European companies involved will each retain a 10% stake. TSMC will take charge of operating the factory, with construction expected to commence in the second half of 2024 and production slated to begin by the end of 2027.
This announcement closely follows Intel’s recent commitment to invest over 30 billion euros in two semiconductor facilities within Germany. Additionally, Intel has plans for a new semiconductor assembly and testing facility in Poland, with an estimated investment of up to $4.6 billion. These strategic moves emphasize Intel’s growing presence in Europe, particularly in Poland where its largest research-and-development facility already exists, employing nearly 4,000 professionals.
