Global Semiconductor Groups in Germany: Chipreus TSMC Is Considering a Plant Near Dresden

Intel is already building in Magdeburg
Chip giant TSMC moves to Saxony

By Hannah Schwarz

The federal government and industry want global semiconductor companies to invest in Germany. A major project is now underway.

Taiwanese semiconductor group TSMC continues plans for its own production in Germany. According to information from “Capital”, the chip giant is considering building a factory in the Dresden area. Other chip manufacturers have already set up production facilities there in recent years. To explore the possibilities in Germany, a TSMC delegation will go to Saxony in October.

TSMC’s explorations could be an important step in the effort to make Germany more independent from global supply chains in the supply of semiconductors. Bottlenecks as a result of the corona pandemic have caused a chip shortage for months, especially among German car manufacturers. The German auto industry is apparently pushing hard for a TSMC settlement in Germany. According to Taiwanese media, the intention is to use the technology of modern 300 millimeter wafers, the disks on which the chips are attached.

TSMC is the world’s largest contract semiconductor manufacturer, but has concentrated much of its production in Taiwan. In the course of tensions with China, pressure is mounting on the group to also build factories in the US and the EU. A company spokesperson said that “no concrete decision had yet been taken” on the European plans. TSMC referred to a period of silence for the next financial report, to be presented Thursday.

The Federal Ministry of Economy declined to confirm TSMC’s specific interest upon request. However, the federal government is willing to widely promote the establishment of semiconductor manufacturers in the country. The aim is to “increase research and production capacity in Germany and the EU and support the industry with good framework conditions to diversify their supply chains more,” said a spokeswoman for the ministry.

In mid-March, the American chip manufacturer Intel announced the construction of a gigafactory in Magdeburg. The project will be subsidized under the European Chips Act – a law designed to boost semiconductor manufacturing in the EU.

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