TSMC has been expanding fast to meet global demand. Following ventures in the U.S. and Japan, the company’s board approved a plan to build in Dresden, Germany. Why was this location chosen, and what do the locals think? FTV brings you the latest from Dresden.

From Germany’s capital of Berlin, we took a two-hour drive to Dresden in eastern Germany.

Yeh Wei-hsiang
FTV reporter
TSMC’s first factory in Europe will be built in Dresden, the capital of Saxony. The fenced-in area you see is roughly 52.7 hectares. It’s right across from a factory of Bosch, an ESMC shareholder.

Last August, TSMC’s board committed NT$123.6 billion to ESMC, the European Semiconductor Manufacturing Company, which will be supported with an additional NT$174 billion in German subsidies. TSMC will hold a 70% stake, while auto parts supplier Bosch and chip firms Infineon and NXP will each hold 10%.

Dresden resident
No, I didn’t know TSMC was going to build a plant here. But I’m happy to hear it. The community will be internationalized.

Dresden resident
I had heard about it. This will create great job opportunities, all of which are related to computers, industry and even government administration. This is very important.

Dresden was chosen for several reasons. ESMC, which will focus on auto chips, is just a two-hour drive from Tesla’s factory in Berlin. BMW, Porsche and Volkswagen plants are only an hour away. Just 11 minutes away by car, the old winery town of Weinbohla was once the location of Bosch’s worker dormitories. Rumor has it that TSMC will build a community for its employees there.

Yeh Wei-hsiang
FTV reporter
Our understanding is that TSMC began recruiting for its German facility about half a year ago. It’s looking for talent including Taiwanese with German work experience. Some restaurant brands already present in TSMC’s Taiwan plants are already planning to come conduct site surveys. Together they will build an unprecedented European auto chip supply chain.

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