Samsung rival TSMC establishing chip fab in Germany

Samsung Foundry’s rival TSMC establishing a chip production plant in Germany. It is worth mentioning that it will be the first semiconductor production base by the Taiwan-based chip manufacturer in Europe.

TSMC today held a groundbreaking ceremony for a chip fab in Dresden, Germany. This significant development came after TSMC’s investment announcement in Europe last year. The company aims to safeguard its semiconductor supply chain.

Reports say that TSMC established a joint venture with Infineon, Bosch, and NXP to make a solid entry in Europe. Entitled ESMC, the joint venture by TSMC produces wafers for automobiles and industrial use at its Dresden plant.

It is said that the Taiwanese chipmaker will invest 10 billion euros, with the support of an additional 5 billion euros from the German gov. TSMC has recently been diversifying its supply chain by expanding its global production bases.

Intel is reportedly delaying investment in Europe, which would result in growth in TSMC’s presence in the region. TSMC is already leading the global foundry market by controlling nearly 60 percent market share.