Chip manufacturer TSMC apparently wants to build a new factory in Dresden. The German automotive industry in particular could benefit from this. Because TSCM primarily wants to supply local manufacturers with its chips.
Germany is considered an important location for many companies in the technology industry. After Intel had already announced a factory in Magdeburg, the chip manufacturer TSMC may now follow suit. This was recently reported by insider sources from the business magazine Nike Asia. Accordingly, German managers and politicians met with executives from TSMC.
If the published information is correct, the company is planning a factory in Dresden. The group plans to start construction in 2024. Saxony and Saxony-Anhalt are thus becoming Germany’s Silicon Valley, because the competition from GlobalFoundries and Intel are also moving there. But what is TSMC drawing in the Federal Republic?
TSMC is apparently planning to build a factory in Dresden
The key lies in what is probably the strongest industry in the country: the automotive industry. In this country, TSMC does not want to produce chips for desktop computers or mobile devices, but rather to focus on technical components for vehicles.
That should probably please the German car manufacturers like VW, BMW and Mercedes, because they recently asked for a partner outside of China. Deliveries from the People’s Republic have become significantly less reliable in recent years.
The delivery times for vehicles were particularly long during the corona pandemic. This is one reason why many buyers refrain from buying a new one. After all, who would want to order a car that has only been in their own garage for a year?
High energy prices do not speak for Germany as a business location
So far, however, no concrete details are known. In addition, there is still no commitment from TSMC. However, the plans don’t seem that far-fetched if you consider the large sales market in Germany. However, there are still major challenges to be overcome before the opening.
Intel’s plans in Magdeburg, for example, are currently being delayed because gas and energy prices in this country have exploded. Germany is also at the top in Europe when it comes to electricity costs. So it remains to be seen how the situation will develop and possibly ease in 2023.