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TSMC to build $11 billion chip plant in Germany with other chipmakers
Tuesday, August 8, 2023 4:09 pm

Taiwan Semiconductor Manufacturing Co. (TSMC) has agreed to build a €10 billion ($11 billion) plant in Germany in partnership with Infineon Technologies AG, NXP Semiconductors NV, and Robert Bosch GmbH.

Debby Wu and Aggi Cantrill for Bloomberg News:

The planned fab will be 70% owned by TSMC, which will operate the facility in the city of Dresden, with Infineon, NXP and Bosch each holding a 10% equity stake, subject to regulatory approval, the companies said Tuesday in a joint statement.

Slated to begin production by the end of 2027, it will provide chips for the automotive and industrial sectors and is a first step for TSMC in establishing a major European presence to counter risks from escalating US-Chinese tensions.

It’s also another coup for Chancellor Olaf Scholz’s ruling coalition, which has agreed €10 billion in aid for a new Intel Corp. plant in Magdeburg in a push to shore up the country’s tech sector and secure supplies of critical components. The government will provide as much as €5 billion in subsidies for TSMC’s Dresden factory, Bloomberg has reported.

The Taiwanese company said in a separate statement that it will contribute €3.5 billion to the project, dubbed European Semiconductor Manufacturing Company GmbH. Total investment is expected to amount to more than €10 billion, including “strong support from the European Union and the German government,” and it will create about 2,000 direct high-tech jobs, the companies said.

MacDailyNews Note: More info in the companies’ press release here.

https://macdailynews.com/2023/08/08/tsmc-to-build-11-billion-chip-plant-in-germany-with-other-chipmakers/#google_vignette