TSMC will start construction of a plant in Germany this August

The Japanese resource Nikkei Asian Review managed to concretize the rumors spread by the Taiwanese media about the readiness of TSMC and its European partners to begin construction of a joint venture in Dresden in the coming weeks. According to updated data, the construction launch ceremony is scheduled for August 20 this year.

Image Source: TSMC

TSMC Chairman and CEO C.C. Wei will reportedly travel to Germany to attend the groundbreaking ceremony for TSMC’s first European facility on August 20 in the presence of equipment and materials suppliers, customers and German officials. Formally, this production site will be managed by the ESMC joint venture, in which TSMC will own 70% of the shares, and Bosch, Infineon and NXP will each receive 10%.

It is expected that the construction of the enterprise will cost more than 10 billion euros, and authorities at one level or another are ready to cover up to half of the costs. The company will be led by Christian Koitzsch, former senior vice president of Bosch and head of the auto components manufacturer’s Dresden site. Actually, the TSMC enterprise will be located next to the same Bosch plant in Dresden, and the Infineon enterprise will not be so far from it. The last of the companies will expand its site in order to increase the volume of production of power electronics and analog components. Infineon’s new production facilities will be commissioned in 2026.

TSMC intends to commission its European plant by the end of 2027. It recently became known that Intel will begin building its plant in Germany no earlier than May next year, and will complete it only by the end of 2028. Intel was forced to postpone the implementation of its project by a shortage of funds, as it is actively expanding production capacity in other regions of the planet.