THE European Commission has committed $5.53 billion in state aid to support Taiwan Semiconductor Manufacturing Co. (TSMC) in establishing its first chipmaking facility in Europe, located in Dresden, Germany.
This significant investment represents half of the $11.03 billion total cost for the new facility and is the largest award approved under the European Union’s (EU) Chips Act, a $43 billion initiative aimed at boosting semiconductor manufacturing across the continent.
In a report by Kavit Majithia for Mobile World Live, “TSMC’s venture in Europe marks a strategic expansion, with the company partnering with Bosch, Infineon, and NXP for this project.
“TSMC will contribute $3.87 billion to the venture, securing a 70 percent stake, while the other three companies will each hold a 10 percent stake.”
This new facility is set to be operational by 2027, positioning TSMC alongside other major semiconductor players like Intel, which is also building a $33.16 billion facility in Germany, scheduled to open in 2028.
“The broader benefits of this investment will create 11,000 new jobs in Germany and across Europe,” said Ursula von der Leyen, European Commission president. “Additionally, the facility is expected to enhance the capabilities of European chip companies, strengthen local supply chains, and provide tailored products to meet the needs of European industries.”
This development is seen as a crucial step in advancing Europe’s semiconductor industry and ensuring the region’s technological sovereignty in an increasingly competitive global market.
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