Taiwan’s Economic Ministry has given the nod for TSMC’s 3.5 billion euro investment in European Semiconductor Manufacturing Company (ESMC) GmbH. The joint venture between TSMC and European companies Bosch, Infineon, and NXP will be located in Dresden, Germany, and specialize in producing 12-inch wafers using TSMC’s process technology.
CEO of InvesTaiwan Emile Chang (張銘斌) said on Friday that this new factory does not mean the relocation of Taiwan’s industries. He emphasized that it will only supplement chip production capacity and that TSMC’s highest-end products related to 5G and AI applications will still be produced in Taiwan.
National Development Council Minister Kung Ming-hsin (龔明鑫) points out that with the experience of setting up factories in the United States and Japan, the establishment of TSMC’s German factory should be smooth.
The Economic Ministry states that this investment will not only establish closer relationships with industry players and customers but also continue Taiwan’s semiconductor technology growth and deepen supply chain connections.