TSMC starts construction of first chip factory in Europe

The construction of the first chip factory of the Taiwanese semiconductor company TSMC in Europe has been heralded with a symbolic ground-breaking ceremony. "The world's largest microchip manufacturer is coming to our continent and joining forces with three European champions," said EU Commission President Ursula von der Leyen at the event in Dresden.

The investment of a good ten billion euros is a joint project between the Taiwanese industry giant TSMC and the companies Bosch, Infineon and NXP Semiconductor, which are already based in Dresden. TSMC is to hold 70 percent of the company, with the other partners each holding ten percent. The plant will be called the European Semiconductor Manufacturing Company (ESMC). The Federal Ministry of Economics intends to fund the project with five billion euros.

The benefits will be felt far beyond Dresden and Saxony, said von der Leyen. European industry will benefit from more reliable supply chains and new products that are tailored to their needs. "In times of growing geopolitical tensions, TSMC will also benefit from geographic diversification into Europe," emphasized von der Leyen.

Scholz "thrilled" about the relocation

"We are thrilled that such an important player in the global semiconductor scene is now opening a site here with us," said Federal Chancellor Olaf Scholz (SPD) at the event. Semiconductors are the fuel of the 21st century, which is economically shaped by two megatrends: the comprehensive digitalization of our lives and the departure from fossil fuels.

The new factory in Dresden is intended to meet the semiconductor needs of the rapidly growing European automotive and industrial sectors, said TSMC CEO C. C. Wei. "With this state-of-the-art production facility, we will bring TSMC's innovative manufacturing methods much closer to our European customers and partners."

Production is scheduled to begin in 2027. The focus will be on chips for the automotive industry. 2,000 jobs are associated with TSMC's first factory in Europe.