TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) will begin constructing a chip plant in Dresden, Germany, in August, marking its first expansion into Europe.
European Semiconductor Manufacturing Corp. (ESMC) will be put into operation in 2027, and it is estimated that it will initially provide 2,000 jobs, per Nikkei Asia. TSMC Chair and CEO C.C. Wei will host a ceremony for the plant on Aug. 20, with company representatives, suppliers, clients, and government officials slated to attend.
The joint venture partners include top chipmaking giants in Europe, such as Robert Bosch, Infineon, and NXP. The project is expected to cost over 10 billion euros ($10.8 billion), and E.U. and German government subsidies account for about half of the plant’s investment.
The company also cooperated with the Dresden University of Technology, sending 30 students to the TSMC training center in Taichung. Doctoral students might be able to conduct research using company equipment, it added.
The plant seeks to localize chip manufacturing as more countries aim to become more self-sufficient and protect against escalating trade tensions. TSMC is building a plant in Arizona, U.S., scheduled for 2025 operations, and one in Kumamoto, Japan.
While ESMC is progressing as scheduled, other plants in Germany have faced construction delays due to weakening macroeconomic demand. Intel and Wolfspeed are facing delays or postponements, showing Europe’s struggle to reduce its reliance on Asian chips.