TSMC Builds Its First Semiconductor Plant in Europe

Taiwan Semiconductor Manufacturing Co. (tsmc) broke ground on its first plant in Europe on Tuesday. The €10 billion (us$11.1 billion) facility in Dresden, Germany, is scheduled for completion in 2027.

The plant will be jointly owned by tsmc and three European companies, together known as esmc. tsmc will own 70 percent while Infineon, nxp and Bosch will each hold 10 percent stakes.

This is more than a groundbreaking ceremony. It is an endorsement for Europe as a global innovation powerhouse.
—Ursula von der Leyen, president of the European Commission

Semiconductors are a foundational component for most electronics, making it a valuable commodity. As such, the EU is aiming to produce 20 percent of the world’s microchips by 2030.

But Germany wants to lead Europe toward that goal. Placing the semiconductor plant, to which they’ve contributed €5 billion, in the heart of “Silicon Saxony,” and spending an additional €15 billion on domestic chip production demonstrates this.

We are dependent on semiconductors for our sustainable future technologies, but we must not be dependent on other regions of the world for the supply of semiconductors.
—Olaf Scholz, German chancellor

Significance: The localization of key microelectronic components makes Germany less susceptible to outside factors, such as trade disruptions in the Red Sea. It also positions Germany at the core of AI development.

Learn more: Read “Why Taiwan Is So Important.”