Today, the Board of Directors of Taiwan’s TSMC will vote to decide on further proceedings for its chip plant in Germany. The German government will provide 5 billion euros ($5.49 billion) to support the construction of the plant in the city of Dresden.
The talks between TSMC and the German government for this plant are in effect since 2021. This plant will work as a fab production plant and operate with partners Bosch, Infineon, and NXP.
Once approved, the TSMC board will finalize the letter of intent from Germany for funding and it will follow the response on the establishment of the new chip plant.
Germany plans to invest around 20 billion euros in the semiconductor industry in the coming years, one of several European governments that wants to lower dependency on Asian countries and build capacity in the region by offering subsidies through the EU Chips Act.