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TSMC Dresden: Taiwanese chip company plans plant with billion-euro funding

A person enters the headquarters of Taiwan Semiconductor Manufacturing Co, Ltd (TSMC) in Hsinchu / Photo by Chiang Ying-Ying/AP/dpa/Archive
A person enters the headquarters of Taiwan Semiconductor Manufacturing Co, Ltd (TSMC) in Hsinchu / Photo by Chiang Ying-Ying/AP/dpa/Archive

Taiwanese chip manufacturer TSMC is close to a decision to locate in Dresden to produce chips for the automotive industry.

According to a media report, the Taiwanese chip manufacturer TSMC is on the verge of deciding to locate in Dresden. At the company's board meeting this Tuesday, the decision is expected to be made, the "Handelsblatt" reported, citing government circles. All formalities have been clarified, it said. The Federal Ministry of Economics did not want to comment on the report when asked.

According to the "Handelsblatt," the federal government has agreed to support the factory construction with five billion euros, from the federal government's Climate and Transformation Fund (KTF). According to the report, TSMC wants to produce primarily chips for the automotive industry in Dresden. According to the report, German government sources said that TSMC's decision to locate here was an enormously important signal. According to the report, TSMC wants to operate the plant in a joint venture with partners Bosch, Infineon and NXP.

As soon as the TSMC board has given the go-ahead, the company could sign a memorandum of understanding with the German government on the funding. The final decision on funding would then have to be made by the EU Commission.

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