Brussels, August 20, 2024, The Europe Today: The European Commission announced on Tuesday its approval of a new silicon chip factory in Dresden, coinciding with Taiwanese semiconductor giant TSMC breaking ground on its first European facility. This development is part of Europe’s broader strategy to reduce dependence on global semiconductor supplies, which are crucial for a wide range of electronics, including computers, cars, and military equipment.
The approval allows the German federal government to provide €5 billion ($5.5 billion) in financial support for the new European Semiconductor Manufacturing Company (ESMC). The Commission emphasized that this initiative would enhance Europe’s security of supply, resilience, and digital sovereignty in semiconductor technologies, contributing to both digital and green transitions.
The ESMC is a joint venture between TSMC and three European firms—Germany’s Bosch and Infineon, and the Netherlands’ NXP. The Commission highlighted that the new facility would produce high-performance chips, with significant advantages and minimal downsides, ensuring that the financial assistance provided is justified.
