Semiconductors: a production plant in Germany

TSMC (Taiwan Semiconductor Manufacturing Company) is a major manufacturer of electronic chips, and the world’s largest semiconductor manufacturer. The Taiwanese giant has just announced the establishment of its first European factory : this new strategic semiconductor production site will be located in Dresden, eastern Germanyand represents an investment of ten billion euros.

To carry out this construction, TSMC, which holds 70% of the shares in the project, has teamed up with three European partners: the Dutch NXP and the Germans Infineon et Bosch (10% each). “Total investments are expected to exceed 10 billion euros in the form of equity, debt and strong support from the European Union and the German government”announced the four partners.

The main semiconductor factory in Europe

The future TSMC plant in Dresden will become the “main place of production of semiconductors in Europe”, according to German Chancellor Olaf Scholz. While the semiconductor crisis continues, against a backdrop of tensions between China and Taiwan, this establishment in Europe should help relieve manufacturers of electronic products, computers, or even electric and connected cars, which work with these essential microchips.

The construction site should begin in the second half of 2024, for an inauguration and the start of production by the end of 2027. The expected monthly production capacity is 40,000 300 mm silicon wafers, and approximately 2,000 jobs direct should be created on the spot.

For its part, the German state should grant juicy grants for this project: several German sources indicate the figure of 5 billion euros. The European Union has decided to mobilize 43 billion euros of public and private investment, through a “Chips Act” which aims to capture a 20% market share in the world, by strengthening the production of chips on the Old Continent.

Germany, a new electronics Eldorado?

Located in the former East Germany, the Dresden region is an important production location for microelectronics in Europeearning it the nickname “Silicon Saxony”.

Many companies are based there, such as the German Infineon which is building a new semiconductor factory there, representing an investment of 5 billion euros, while the American Wolfspeed has announced a major investment in western Germany. . In addition, the German government recently awarded almost 10 billion euros in subsidies to Intel, the American semiconductor giant, for the construction of its new plant in Magdeburg.

To date, the bulk of TSMC’s production is based in Taiwan, but the group will also expand to Arizona, USA, by 2025.

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Source: AFP