Taiwan Semiconductor Manufacturing Company (TSMC) fleshed out details about plans to build a new semiconductor factory in Germany, as it got the go-ahead to lead a joint venture from its board and the country’s government.
Reuters reported yesterday (7 August) official confirmation was imminent. It comes after two years of talks between TSMC and the German government.
TSMC stated it would work with Bosch, Infineon Technologies and NXP Semiconductors to build a plant in Dresden, which will have the capacity to manufacture 40,000 wafers a month for automotive, home products and the industrial sector.
The Taiwanese company will invest a total €3.5 billion for a 70 per cent stake in a new subsidiary dubbed European Semiconductor Manufacturing Company.
Bosch, Infineon and NXP Semiconductors will each take 10 per cent and the factory is scheduled to open in 2027.
As part of a European Union (EU) push to bolster the continent’s semiconductor sector, Germany’s government will also invest €5 billion into the factory.
The EU unveiled the European Chips Act in February 2022, a €43 billion subsidy plan to double the continent’s chipmaking capacity by 2030.
Germany has proved attractive for big name chipmakers, with Intel also committing to build a €30 billion facility, due to open in 2028.
For TSMC, the plant will be its first in Europe and its third outside its traditional manufacturing bases of home market Taiwan and China.
CEO CC Wei said Europe is “highly promising for semiconductor innovation, particularly in the automotive and industrial fields”.