Dresden-based chip manufacturing facility obtains substantial financial assistance.
Starting from 2027, the TSMC factory in Dresden is expected to manufacture microchips for the automotive sector. This venture, worth over ten billion euros, will see half of the funds coming from German sources. The European Commission grants their approval right before the groundbreaking ceremony.
The European Commission blesses the German allocation of five billion euros for constructing the semiconductor facility in Dresden. This venture will fortify Europe's semiconductor technology security, resilience, and digital sovereignty, as per the Commission's statement. Additionally, it'll boost the digital and green transformation.
TSMC is operating in Dresden in a partnership named ESMC with German companies Infineon and Bosch, and Dutch firm NPX. The upcoming plant, estimated at over ten billion euros, will primarily manufacture microchips for the automotive industry. Production is anticipated to commence by the end of 2027, generating 2,000 job opportunities.
"Keep the momentum"
The Commission highlights the Dresden facility as an open fabrication site, available for custom chip orders. Moreover, it has pledged support for European small and medium-sized enterprises and startups to enhance their skills and competencies. European educational institutions will access these production facilities, thereby promoting research and knowledge creation in Europe.
German Federal Minister of Economics Robert Habeck commends the Brussels authority's swiftness – from Germany's standpoint, this pace needs to be sustained: "We'll persist with this project's high tempo and swiftly approve the funding."
The funding approval for the billion-dollar Dresden factory is contingent upon the European funding program Chips Act. This legislation targets raising the EU's share of global semiconductor production from ten to twenty percent by 2030.
The Dresden factory, a key component of this project, is expected to attract custom chip orders from various entities due to its open fabrication status, as mentioned by the Commission. Additionally, the German Federal Minister of Economics expresses the need to maintain the project's pace, ensuring swift approval of further funding.
