Plans by Taiwan Semiconductor Manufacturing Co. (TSMC) to build a fab in the German city of Dresden could help integrate the company in Europe's automotive industry supply chain, the town’s mayor said Thursday (Oct. 26).

TSMC, the world’s largest contract manufacturer of computer chips, has in principle decided to set up the plant, its first in Europe. This is despite concerns about shortages of talent, labor issues, and government subsidies.

Germany reportedly agreed to send exchange students to Taiwan for training.

Mayor Dirk Hilbert told CNA the semiconductor project was the largest single investment in the state of Saxony and in its capital, Dresden. He hoped that many local businesses could become suppliers to TSMC.

In early 2021, Germany’s automotive sector struggled with a shortage of semiconductors, leading to requests for the Taiwan company to invest. The car industry has now arrived at a key turning point, where electronics and chips have become more important elements than combustion engines, according to Hilbert.

The mayor also pointed out that top German carmakers, including the Volkswagen Group, Porsche, and BMW, operated factories in the area. TSMC’s presence would result in closer cooperation between chip designers, contract manufacturers, and their customers, he said.

The Dresden project will be managed by European Semiconductor Manufacturing Co. (ESMC), with 70% of shares held by TSMC. Germany’s largest chipmaker, Infineon Technologies AG, engineering group Bosch, and NXP Semiconductors NV of the Netherlands each hold a 10% stake in the new company,

By: DocMemory
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