The facility, located in Dresden in eastern Germany, is scheduled to be operational by 2027. It is a highly strategic project for Berlin and the European Union. Even German Chancellor Olaf Scholz and European Commission President Ursula von der Leyen met on the occasion.
The Dresden factory will produce semiconductors for the automotive industry starting in 2027. This factory will be a boon for Germany’s strong manufacturers in the transition to electric vehicles.
Berlin has done its best to attract the Taiwanese semiconductor giant, allocating around 5 billion euros in subsidies that were approved yesterday by the European Commission because the Dresden plant is also a victory for Brussels.
TSMC’s establishment of a factory in Germany will help reduce Europe’s dependence on these electronic chips.
These components, which have become indispensable to the global industry for the production of computers, missiles and wind turbines, are currently produced mainly in Asia.
The European Union adopted a major plan in July that includes tens of billions of euros of private and public investment to develop its own semiconductor industry, aiming to increase its share of global production of these electronic components from 9 percent to 20 percent by 2030.
