Dresden. A symbolic groundbreaking ceremony in Dresden on Tuesday marked the start of construction of the Taiwanese semiconductor company TSMC’s first chip factory in Europe. “The world’s largest microchip manufacturer is coming to our continent and joining forces with three European champions,” said EU Commission President Ursula von der Leyen at the ceremony in Dresden.
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TSMC CEO CC Wei, arguably the most powerful man in the entire semiconductor industry, announced: “With this state-of-the-art production facility, we will bring TSMC’s innovative manufacturing methods much closer to our European customers and partners.”
The European Commission has approved the five billion euros that Germany wants to use to support the construction of the TSMC factory in Dresden, which will cost ten billion euros. According to the Commission, the plant would not be built without the funding. Since the European Chip Act aims to establish innovative and sustainable semiconductor production in Europe, the Dresden factory of the world’s largest contract manufacturer of silicon microelectronics is considered an important milestone.
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Chancellor Scholz: “We need a lot of semiconductors”
Chancellor Olaf Scholz (SPD), who was there along with Ursula von der Leyen, was a little outspoken and stressed: “We are delighted that such an important player in the global semiconductor scene is now opening a location here.” In his usual succinct manner, however, he commented on the EU’s green light for the German tax billions as a “good sign.” Central technologies must be located in Europe. It is important to avoid dependencies, said Scholz. After the go-ahead from Brussels, Federal Minister for Economic Affairs Robert Habeck (Greens) promised: “We will complete the financing approval quickly.”
Scholz also pointed out the role of semiconductors on the path to climate neutrality. This can only be achieved with wind power, photovoltaics and climate-neutral mobility. “But all of these areas have one thing in common: they need semiconductors, lots and lots of semiconductors,” he said.
Dresden is the best place for microelectronics in Europe.
Michael Kretschmer (CDU)
Prime Minister of Saxony
TSMC plans to build a new semiconductor factory in the north of Dresden together with Bosch, Infineon and NXP Semiconductor. From 2027, chips will be produced primarily for the automotive industry.
What will happen until production starts in 2027?
First, the excavation pit will be dug. According to ESMC President Christian Koitzsch, the plant has a floor area of 200 by 200 meters and will be ten meters deep. The 500,000 cubic meters of excavated earth will be distributed largely on the adjacent site. After that, the building shell will be built, and in 2027 the clean room will be installed and production will begin. In advance, the TSMC plants in Japan and the US state of Arizona were also examined again in order to draw conclusions about Dresden. But there is one problem in Saxony: the building does not have to be earthquake-proof. Chips with higher structure widths are to be manufactured for the automotive industry – for networked vehicles and electric cars. 2,000 jobs are to be created at EMSC. Provision is already being made for the need for skilled workers. The first 30 students from Saxon universities recently returned from Taiwan. They studied there for six months and completed internships at TSMC. A dual training program in the professions of microtechnologist and mechatronics engineer is scheduled to begin next year.
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Saxony’s Prime Minister Michael Kretschmer (CDU) spoke of a great day. “Dresden is the best place for microelectronics in Europe,” he said. “Silicon Saxony means future technology, economic policy and science policy that has worked continuously towards one goal for many years and decades, together with many partners.”
Silicon Saxony: Dresden region has developed into a globally recognized semiconductor cluster
Frank Bösenberg, managing director of the Saxon high-tech network Silicon Saxony, praises the settlement. He sees TSMC’s commitment as the result of consistent development over the last 30 years, “in which Saxony and the Dresden region have developed into a globally recognized semiconductor cluster”: “We can already see today how both the region and the suppliers are benefiting from the developments and continuing to grow.”
Greens: Germany again a “noticeable player on the world market”
Torsten Schulze, economic policy spokesman for the Green Party, speaks of an important success, “which makes the Federal Republic and Europe a noticeable player on the global market in semiconductor and chip production again”: “After the considerable losses of European market share in the chip market over the last 20 years, it is all the more important that settlements of this size are secured and realized. Together with its partners Infineon, BOSCH and NXP, TSMC is maintaining its global market leadership – and at the Dresden location.”
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Saxony’s state capital was involved in the planning from the very beginning. Mayor Dirk Hilbert called the TSMC settlement in Dresden a “huge success for the entire region, for Germany and for Europe”. He was very pleased “that things are now getting started after only one year since the announcement – also thanks to the great cooperation of all the public partners involved”.
DNN
