Massive construction project set to commence in Dresden, marking the largest in Germany.
Dresden, Germany is set to become a hub for advanced technology with the commencement of a new chip factory project by TSMC and ESMC. The joint venture, backed by significant government support, will focus on specialty technology chips tailored for the automotive and industrial sectors.
State Secretary Thomas Kralinski confirmed that over 1,000 construction workers will be on site for the TSMC project, with high-rise construction set to begin soon. The exact timeline for start of production in Dresden has not been disclosed, but the goal is to complete the factory by 2027.
The TSMC factory, which will be the largest construction site in Germany, is part of a broader strategy by TSMC, which includes heavy investments in Taiwan, the US (Arizona fab), and Japan, focusing on advanced 2-4nm nodes for AI and HPC markets.
Meanwhile, Infineon is also expanding its presence in Dresden. Work on the company's plant, which focuses on semiconductors for the automotive industry and renewable energy sector, is currently in progress. The shell construction for this plant is already complete, and production is expected to start in 2026. The expansion is expected to create around 1,000 new jobs.
In the surrounding area, Infineon is building another plant, with 20 cranes visible from afar at the TSMC construction site. The total investment for the TSMC plant is ten billion euros, with half of it a grant from the Federal Ministry of Economics. The aim is to start production at the TSMC factory after its completion.
The focus of production at both the TSMC and Infineon plants will be chips for the automotive industry, further solidifying Dresden's position as a key player in the global automotive technology landscape. The TSMC plant, in particular, will be a significant step in TSMC's cautious but steady advance into the European manufacturing landscape.
The TSMC factory's significant investment of ten billion euros, with half a grant from the Federal Ministry of Economics, will be a major player in the European finance landscape, contributing to the business sector's growth in Dresden. The focus on specialty technology chips for the automotive industry aligns the TSMC project with the ongoing expansion of Infineon's semiconductor business in the same sector, signifying a strategic move in the technology industry.
