The Taiwanese semiconductor manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) is set to join forces with a substantial investment in establishing a chip production facility in Dresden. The decision has been welcomed by Chancellor Scholz, who commented, “Germany is likely developing into a major hub for semiconductor production in Europe. Modern technology investments are being made in Germany, which makes it a strong economic location.”
In a significant move that underscores Germany’s appeal as a competitive hub for key technologies such as microelectronics, TSMC has chosen to further its global presence by investing in Germany. The TSMC board announced this strategic decision on Tuesday, signaling the growing prominence of Germany in the semiconductor industry.
Dresden’s project has garnered participation not only from TSMC but also from prominent players like Bosch, semiconductor manufacturer Infineon, and Dutch company NXP. It is estimated that TSMC’s investments could reach a minimum of ten billion euros, according to a statement from the Federal Ministry for Economic Affairs.
Crucial for Germany’s and Europe’s Future Competitiveness
Chancellor Scholz emphasized the significance of these major investments in semiconductor manufacturing, stating that they are pivotal for global production resilience. Beyond their global impact, such investments are crucial for securing the future competitiveness of both Europe and Germany.
Early Commencement Enabled
Federal Minister for Economic Affairs Habeck echoed the sentiment, underlining that TSMC’s investment will play a substantial role in safeguarding Germany’s and Europe’s supply of semiconductor chips. He noted that the German government will support the endeavor through the European Chips Acts. Recognizing the competition on an international scale, the German government facilitated an accelerated project commencement to strengthen Germany’s position as an investment destination.
Germany and Europe’s Path to Independence
Expanding Germany’s and Europe’s capacities in chip development and manufacturing is of utmost importance. Halbleiter chips are omnipresent, powering computers, wind turbines, photovoltaic systems, heat pumps, and electric cars. With this in mind, semiconductor chips are pivotal in the transformation toward a carbon-neutral economy.
Series of Large Investments from Saxony-Anhalt to Saarland
This development comes shortly after the German government signed a memorandum of understanding with Intel in June. Intel plans to invest over 30 billion euros in a new semiconductor factory in Magdeburg.
In February, the US semiconductor manufacturer Wolfspeed and German company ZF Friedrichshafen announced their joint venture to build a chip factory in Saarland.
Improving the Economic Framework
Chancellor Scholz acknowledged the array of investments in recent years, spanning from electric vehicle production to battery manufacturing and eco-friendly steel production. He reiterated Germany’s standing as a robust economic hub for cutting-edge technology investments.
As Germany aims to remain an attractive and competitive location, the federal government continues to enhance investment conditions. A series of measures have been initiated to expedite approval processes, reduce bureaucracy, and attract skilled professionals.
https://www.bundesregierung.de/breg-de/aktuelles/halbleiter-deutschland-2207612