Germany Spends Big To Win $11 Billion TSMC Chip Plant

TSMC is committing $3.8 billion to establish its first European factory in Germany, benefiting from significant state support for the $11 billion project as Europe aims to shorten supply chains. Reuters reports: The plant, which will be TSMC's third outside of traditional manufacturing bases Taiwan and China, is central to Berlin's ambition to foster the domestic semiconductor industry its car industry will need to remain globally competitive. Germany, which has been courting the world's largest contract chipmaker since 2021, will contribute up to 5 billion euros to the factory in Dresden, capital of the eastern state of Saxony, German officials said. "Germany is now probably becoming the major location for semiconductor production in Europe," German Chancellor Olaf Scholz said, less than two months after Intel announced a 30 billion euro plan to build two chip-making plants in the country. "That is important for the resilience of production structures around the world, but it is also important for the future viability of our European continent, and it is of course particularly important for the future viability of Germany." TSMC said it would invest up to 3.499 billion euros into a subsidiary, European Semiconductor Manufacturing Company (ESMC), of which it will own 70%. Germany's Bosch and Infineon and the Netherlands' NXP (NXPI.O) will each own 10% of the plant, which will make up to 40,000 wafers a month for cars and industrial and home products when it opens in 2017. The factory will cost around 10 billion euros in total.

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