The EU Commission endorses substantial financial aid, amounting to billions of euros, for TSMC's semiconductor manufacturing facility in Dresden.
TSMC is running operations in Dresden, Germany, as part of a collaboration called ESMC with Infineon, Bosch, and NPX from the Netherlands. The upcoming facility, projected to cost more than 10 billion euros, is primarily focused on manufacturing auto-related microchips. The production is scheduled to start by the end of 2027, generating approximately 2,000 jobs.
Tuesday saw the Commission highlighting that the Dresden site would operate with an open manufacturing model, enabling customers to customize their chip orders. There's also a commitment to aid small and medium-sized businesses and startups across Europe, helping them enhance their proficiency and knowledge. European universities will enjoy exclusive access to production capacities, fostering scholarly research and knowledge growth in Europe.
The approval of the billion-euro funding for the Dresden factory stems from the European Chips Act subsidy program. The legislation aims to elevate the EU's semiconductor production share worldwide from 10% to 20% by 2030.
The European Commission announced that 'The following shall be added:' to the Dresden site's operations, which includes providing support for customized chip orders for customers and facilitating access to production capacities for European universities. This initiative is expected to stimulate research and knowledge growth in the continent.
