The Taiwanese company, considered one of the largest in the sector, is building its first German and first European factory in Dresden, Saxony, in collaboration with three partners.
Germany’s Bosch, Germany’s Infenion and Dutch NXP will each receive a 10-10-10 percent ownership stake in the joint venture, while TSMC’s ownership stake will be 70 percent.
According to the statement from the board meeting on Tuesday, they are trying with the investment to meet the rapidly growing needs of the automotive and manufacturing industries. Silicon wafers with a diameter of 300 mm will be processed at the factory using the latest technology.
Nearly two thousand jobs have been created. Construction will begin in 2024, and production may start in 2027. They said the investment value exceeds ten billion euros, and the exact amount depends on the amount of German state support.
According to the Handelsblatt newspaper, the federal government’s contribution could reach five billion euros. TSMC is the world’s largest semiconductor manufacturer, and is a supplier to Apple and Qualcomm, among others.
Thomas Schmidt, Minister Responsible for Economic Development in the state government, emphasized that the decision to invest in Dresden is “good news”, as it, along with other similar projects, gives a great impetus to economic development in the central region of Germany. From Saxony, adding that the establishment of the Taiwanese semiconductor company in Germany is also beneficial to the European economy seeking independence in supply.
In addition to TSMC, many other major players in the sector are strengthening their presence in Germany, most recently, in June, the US company Intel announced that it would build a semiconductor manufacturing plant in Magdeburg, the capital of Saxony-Anhalt.
The development of more than 30 billion euros is the largest foreign investment in the history of the German economy, according to the MTI report.
