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TSMC Commences Construction of First European Chip Plant in Germany

TSMC Commences Construction of First European Chip Plant in Germany

TSMC, the world's top chipmaker, broke ground on its first European plant in Dresden, Germany. Aiming to start operations by 2027, the facility targets the automotive sector, a key industry in Europe.

The plant, a joint venture with Bosch, Infineon, and NXP, will focus on producing 12-nanometer to 28-nm chips, essential for cars and industrial equipment. Construction begins this year, with a projected cost exceeding 10 billion euros.

TSMC's move reflects broader trends in the semiconductor industry, driven by global demand and government incentives. The EU aims to increase its share of the global chip market from 9% to 20% by 2030.

TSMC's expansion also counters claims by U.S. political figures that Taiwan dominates the chip business. Despite such rhetoric, TSMC remains committed to its global expansion plans, including ongoing projects in the U.S. and Japan.

The Dresden plant underscores the strategic importance of semiconductors in modern economies and the competitive dynamics shaping the industry's future.

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