TSMC Starts €10B Dresden Chip Plant with EU Subsidies, Production in 2027, Targets Auto Sector

Aug 20, 2024, 10:18 AM

Taiwan Semiconductor Manufacturing Company (TSMC) has commenced construction on its first European semiconductor plant in Dresden, Germany. The project represents a significant €10 billion investment, with €5 billion in subsidies approved by the European Union and provided by the German government. The Dresden facility is part of a joint venture with Bosch, Infineon, and NXP, and is expected to bolster Europe's chip supply chain resilience. TSMC executives, including Chairman C.C. Wei, attended the groundbreaking ceremony. The plant will focus on expanding TSMC's CoWoS capacity and is anticipated to begin production in 2027, with an eye on the auto sector. This development aligns with the EU's strategy to strengthen its industrial capabilities and reduce dependency on external semiconductor sources.