In a pivot towardEurope, Taiwanese chipmaker TSMC decided yesterday to invest in a 10bn chip factory in Germany.
As such, the Taiwanese producer is looking to geographically diversify its dominantcomputerchip industry.
Taiwan Semiconductor Manufacturing Corporation, or TSMC, produces most of the chips in Taiwan.
This means massive state subsidies, of which TSMC has now decided to take advantage.
The TSMC-majority-owned (70%) subsidiary will be known as the European Semiconductor Manufacturing Company (ESMC).
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Yesterday, TSMCs boardapproved an equity investmentof 3.5bn into the plant.
Construction will commence in the second half of 2024, and production is scheduled for the end of 2027.
However, the chips produced in Dresden will not be the latest technology.
Rather, they will be of an older generation favoured by the automotive industry.
The German government has agreed to front half of the total costs for the Dresden fab, i.e.
5bn, which the economy ministry says is in line with theEuropean Chips Act.
The $40bn project (36.5bn) constitutes one of the largest foreign direct investments in US history.
Access to semiconductors is essential to a countrys economy, as well as technological advancement and innovation.
However, the German government has assured TSMC it will conjure both enough skilled workers and materials.
In any case, this is far from the last chapter in the global semiconductor saga.
Story byLinnea Ahlgren
Linnea is the senior editor at TNW, having joined in April 2023.
Dabbles in gaming and fitness wearables.
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