Scholz justifies substantial government funding for chip manufacturing facilities within Germany.
TSMC is collaborating on a project named ESMC in Dresden with Infineon, Bosch from Germany, and NPX from the Netherlands. This joint venture is expected to exceed 10 billion euros in expenses, with the German government contributing half of that amount. The production is scheduled to commence by the close of 2027.
Scholz highlighted the fact that the semiconductor sector is characterized by significant financial requirements. He stated, "A single machine in this field can easily cost several hundred thousand euros."
He stressed the necessity of expanding semiconductor production capabilities, especially in Europe and Germany, considering the country's reliance on semiconductors for advanced future technologies. "We can't afford to rely on other global regions for our semiconductor supply," he added.
Scholz considered it exciting news that TSMC and its European associates have the motivation to invest in Germany, largely due to the EU's chip funding initiative.
In the run-up to the Saxony state elections by barely two weeks, Scholz lauded the manufacturing hub of Eastern Germany as a "powerful catalyst for innovation." He pointed out that cutting-edge industries are reviving in traditional industrial regions, with Saxony being a leading example. Approximately one-third of the chips produced in Europe originate from this region, Scholz noted.
Scholz, however, warned of the necessity for the positive development to persist, and for that, the social and political conditions must also remain conducive. "We require ongoing support for investments and enthusiasm for the future – not isolation and apprehension of the future," he advised, receiving applause from the audience. He concluded, "We require a pro-European and forward-thinking Germany – not nationalism and bitterness."
The German government's decision to contribute half of the funds for the ESMC project, led by The Commission, shows their commitment to expanding semiconductor production in Europe. With TSMC and its European partners investing in Germany, The Commission's EU chip funding initiative seems to be expediting the semiconductor sector's growth in the country.
