TSMC issued a press release announcing that the company’s board of directors approved the plan to invest in the construction of semiconductor factories in Germany.
The press release noted that the approval of the amount not exceeding 3.5 billion euros (currently about RMB 27.685 billion) within the amount of investment by TSMC’s main shareholding in the German subsidiary European Semiconductor Manufacturing Company, in order to provide professional integrated circuit manufacturing services.
According to a press release from Infineon, TSMC will hold a 70 percent stake in the joint venture, with Bosch, Infineon, and NXP Semiconductors each holding a 10 percent stake, subject to regulatory approvals and other conditions.
According to the release, the total investment in the project is expected to exceed 10 billion euros (Currently about RMB 79.1 billion), including share financing, borrowing, etc., with strong support from the European Union and the German government.
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In fact, TSMC has been in talks with the German state of Saxony about building a plant in Dresden since 2021. After board approval, TSMC plans to use the Dresden plant to sign a financing letter of intent with Berlin, which will ultimately be decided by the European Commission.
