Ahead of Intel: TSMC will begin building a chip factory in Dresden within a few weeks

The day before it became known about Intel’s intentions to abandon the construction of a research center in France and a chip packaging plant in Italy. Along the way, it was reported about the possibility of a delay in the launch of the enterprise in Germany. Deutsche Welle recently reported that construction of rival TSMC’s plant in Dresden would begin within weeks.

Image Source: TSMC

It was initially believed that TSMC would begin construction of the Dresden facility in the fourth quarter, but if we are talking about the coming weeks, the process could start as early as the third quarter. Construction of TSMC’s German facility is expected to be completed by the end of 2027, allowing the company to begin production there soon after.

In the European joint venture, which will operate the production site in Dresden, TSMC will own 70% of the capital, with Bosch, Infineon and NXP each holding 10% shares. The authorities of the European Union and Germany in total are going to cover up to half of the investors’ costs for the construction of this enterprise. The municipal authorities of Dresden will spend 250 million euros to modernize the water and electricity systems at the TSMC site.

At the future German plant, TSMC intends to produce 28-nm and 22-nm chips with planar layout, as well as products with FinFET-type transistor layout, using more advanced technological standards of 16 and 12 nm. Monthly production volume can reach 40,000 silicon wafers of standard size 300 mm. At the same time, Intel will begin building its plant in Germany no earlier than May next year, as local media report.