On Tuesday, the board of directors of TSMC decided to invest 3.5 billion euros ($3.8 billion) to build a chip factory in Germany. This comes as the first TSMC plant in Europe and its third in the world.
According to the information, the latest move from TSMC aims to get huge state support for the $11 billion plant as the EU looking to boost the supply chain of important products.
The European Union has approved the European Chips Act, a 43 billion euro subsidy plan to double its chipmaking capacity by 2030. This is an effort to catch up with Asia and the US after shortages and high prices during the COVID-19 pandemic created havoc for the continent’s carmakers and machine builders.
Both TSMC and Germany have been pursuing conversations to establish a new chip company in the country since 2021. The host will give away up to 5 billion euros in support to form the factory in Dresden, capital of the eastern state of Saxony.
“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.”