TAIPEI: Taiwan’s semiconductor giant, Taiwan Semiconductor Manufacturing Company (TSMC), has announced a substantial investment of $3.8 billion (3.5 billion euros) in a new semiconductor manufacturing facility in Germany. This marks a significant step forward for Europe’s efforts to bolster domestic chip production.
The new factory, TSMC’s first in Europe, is projected to have total investments exceeding 10 billion euros, with strong support from the European Union, the German government, and TSMC’s project partners. The venture will involve a joint effort with German companies Bosch and Infineon, as well as Dutch firm NXP. Construction is set to commence in the second half of 2024.
TSMC is a pivotal player in the semiconductor sector, holding more than half of the global market share for microchips. The new facility in Germany is anticipated to commence production by the end of 2027, with a monthly capacity of 40,000 300mm (12-inch) wafers. The project is also expected to generate approximately 2,000 direct jobs.
Germany to Become Hub of Semiconductor Production
German Chancellor Olaf Scholz lauded the investment, stating that Germany is poised to become a prominent hub for semiconductor production in Europe. He emphasized the strategic significance of bolstering domestic production for the stability of the European continent and Germany’s future.
In light of the recent energy crisis triggered by the conflict in Ukraine, Germany and its allies have been actively seeking to reduce dependencies on countries like China and increase local production of vital components such as semiconductor chips. The European Union has set ambitious goals under its “Chips Act” to elevate Europe’s share of global semiconductor production to 20 percent by 2030, recognizing the crucial role these chips play in powering various technologies.
The planned semiconductor plant in Germany was applauded by the EU’s industry commissioner, Thierry Breton, as a crucial step towards stronger supply security for Europe, particularly within industries like automotive manufacturing.
The new facility will be situated in the city of Dresden, known as Silicon Saxony for its strong high-tech manufacturing presence. TSMC’s CEO, CC Wei, highlighted Europe’s potential for semiconductor innovation, especially in sectors like automotive and industrial applications.
