TSMC Building Chip Factory in Germany

by Carolyn Mathas

TSMC announced it will build a massive production facility in Dresden, Germany. The new plant for 300-millimeter semiconductors will be in “Silicon Saxony.”  The company will likely receive financial support from the German government and the EU. The factory will have a monthly capacity of 40,000 wafers. Construction will start in the second half of 2024, and the facility is expected to be operational by the end of 2027. Bosch, Infineon, and NXP are investing ten percent each into the project. The output will be aimed primarily at the European and German automotive and industrial sectors. A top reason cited for choosing Germany was clean forms of energy.

Interestingly, reports are that Germany is struggling to fill jobs given its high labor shortages. Automotive technology is one of the top segments where shortages exist. Just last week, TSMC pushed out the opening of a chip facility in Arizona, citing a lack of skilled labor. Production was estimated for 2024, but it will likely begin in 2025. A second plant in Arizona was expected to be online in 2026, but no word yet on that one slipping.

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