Taiwan Semiconductor breaks ground on its first European wafer fab, receiving 5 billion euros in subsidies from the German government

Taiwan Semiconductor is breaking ground on its first European factory in Dresden, Germany, planning to start production in 2027 with an investment of over 10 billion euros, of which the German government is providing 5 billion euros in subsidies. German Chancellor Scholz emphasizes the autonomy of semiconductor supply and plans to support the domestic semiconductor industry. Taiwan Semiconductor will hold 70% of the shares in the new factory, with partners including Bosch, Infineon, and NXP each holding 10%. The new factory will mainly produce power semiconductors for the automotive industry to meet the localization needs of the European Union. The expansion of semiconductor production capacity in the EU faces challenges