TSMC Selects Dresden, Germany for New Plant, to Focus on Automotive Technology Production

According to the report by Taiwan's Commercial Times, although the leading wafer foundry TSMC has not confirmed its specific plans for investment in Europe, sources from equipment and production chain manufacturers have revealed that TSMC has selected Dresden, Germany as the location for its new plant, with production expected to start in 2025.

While TSMC currently does not have a specific plan to establish a factory in Europe, the company has stated that it is in talks with customers and partners in Europe to evaluate the possibility of establishing a special process wafer factory focusing on automotive technology, based on customer demand and the level of government support.

According to sources in the supply chain, TSMC has selected Dresden, Germany as the location for its European plant. This decision takes into account the fact that the area already has a complete semiconductor production chain and supply ecosystem, as well as the advantages of EU subsidies and proximity to customers. It is reported that Infineon, Bosch, GlobalFoundries, X-Fab, NXP, and other companies have established wafer factories in Dresden, with Applied Materials, ASML, and Siltronic also having a presence in the area.

Previously, insiders from wafer tool manufacturers revealed that TSMC's team had visited Germany multiple times over the past two years to evaluate the feasibility of establishing a 12-inch wafer factory in the country, with Dresden being the most likely location.

TSMC has stated that in the next five years, overseas production capacity will account for over 20% of the total capacity for 28-nanometer and more advanced processes, based on customer demand and the level of government support. This news may be of interest to electronic components distributors who are interested in TSMC's future plans and may wish to take these plans into account when making business decisions.