TSMC, a world leader in semiconductor manufacturing, is expanding its global presence with the opening of its first factory in Europe. Construction of the factory, located in Dresden, Germany, will begin in August and production is expected to begin by the end of 2027.
TSMC has partnered with major European companies such as Bosch, Infineon and NXP, which will each hold a 10% stake in the plant. TSMC will retain a 70% stake and will benefit from a substantial subsidy of 3.5 billion euros from the German government, equivalent to half of the construction costs of the factory.
The city of Dresden
TSMC’s plant will initially focus on the production of mature technologies, namely 28/22nm and 16/12nm chips, but the company plans to expand production based on market demand. The factory will create 2,000 highly skilled jobs and is a major step forward for the European Union, which is investing in growing its semiconductor manufacturing capabilities through initiatives such as the EU Chips Act.
TSMC’s arrival in Europe could challenge Intel’s leadership in the region. The American company is also building its own plant in Germany, but it will face competition from the Taiwanese giant, which has a solid reputation and extensive experience in producing cutting-edge chips.
The construction of the first TSMC plant in Europe represents a crucial moment for the semiconductor industry, which is slowly delocalizing so as not to be too tied to the fate of Taiwan. In some ways it is also a signal that TSMC is no longer so sure that chip production will remain in Taiwan and that it is not in China’s interest to invade the region.
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