Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, is to construct a €10bn computer chip plant in Dresden, Germany, expected to be a key supplier to European industry and car makers.

An event was held in Dresden on 20 August 2024 to mark the construction of a new semiconductor chip plant in Dresden, often referred to as the heart of Germany’s ‘Silicon Saxony’ chipmaking region.

The plant is the result of a joint venture called the European Semiconductor Manufacturing Company (ESMC) between TSCM, German engineering company Robert Bosch, German semiconductor manufacturer Infineon Technologies AG and Dutch semiconductor manufacturing company NXP Semiconductors.

To build the €10bn plant, the EU Commission has approved €5bn worth of state aid – the biggest approved so far under the EU Chips Act, and the first in Germany.

The EU Chips Act, announced in early 2022, is aimed at ramping up the production of chips within Europe’s borders and helping Europe reduce...