Taiwan to build chip plant in Germany

Taiwan Semiconductor Manufacturing Co. (TSMC) is set to hold a groundbreaking ceremony for its first European plant in Dresden, Germany, next month. The move signifies a crucial step in the world’s leading chipmaker’s global expansion strategy.

TSMC Chairman and CEO C.C. Wei will lead the ceremony, scheduled for August 20, alongside key equipment suppliers, clients, and government officials.

The Dresden plant, officially named European Semiconductor Manufacturing Corp. (ESMC), is expected to commence operations by late 2027.

TSMC’s European joint venture has top chipmaking clients like Infineon, Robert Bosch, and NXP as key investors, each holding a 10 per cent stake.

The project, costing over 10 billion euros ($10.8 billion), aims to address the EU’s need for localised automotive and industrial chips.

Christian Koitzsch, a seasoned industry professional and former Bosch executive, has been appointed to lead the venture.

The ESMC site is located near Bosch’s Dresden plant and close to Infineon’s upcoming 5-billion-euro plant for power semiconductors, analog, and mixed-signal chips, set to begin production in 2026.

TSMC is expanding in Japan, the US, and domestically to meet the growing demand for chip production in various countries.

The company is focused on starting production at its cutting-edge plant in Arizona by 2025 and is currently conducting test production at its first plant in Kumamoto, Japan.

TSMC is also aiming to start production of 2-nanometer chips, the most advanced to date, in Taiwan next year.

However, Europe’s semiconductor ambitions have faced challenges, with Intel delaying its Magdeburg plant and Wolfspeed postponing its German facility.

Attribution: The Nikkei Asia