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TSMC makes 3.5B euros investment to build plant in Germany

Reporter Huang-Chi Ho
Release time:2023/08/09 19:42
Last update time:2023/08/09 19:42
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TAIPEI (TVBS News) — Taiwanese semiconductor manufacturer TSMC announced on Tuesday (Aug. 9) an investment of 3.5 billion euros in a facility located in Germany, marking TSMC's inaugural site in Europe and capitalizing on substantial government backing for the US$11 billion plant.

TSMC stated it would invest up to 3.499 billion euros into European Semiconductor Manufacturing Company (ESMC), of which it will own 70%.

 

This move marks TSMC's first production base outside Taiwan and China, and is critical for the German semiconductor industry, especially for maintaining global competitiveness in the automotive sector.

German officials have confirmed ongoing negotiations with TSMC since 2021. They are poised to contribute 5 billion euros to bolster the factory in Dresden, the capital of Saxony, in eastern Germany.

German Economy Minister Robert Habeck commended the investment as a vote of confidence in the German economy, which has confronted challenges due to escalated energy costs, further compounded by Russia's incursion into Ukraine. Since the invasion, Europe's foremost economic power has grappled with concerns about potential deindustrialization.
 

The collaboration between TSMC and ESMC aims to stimulate orders for sectors including machinery and optical manufacturing while also acting as a catalyst to attract more skilled technicians.

Taiwan Business

#Taiwan#Germany#TSMC#ESMC#semiconductor

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