Under Development: Dresden Set to Host Germany's Grandest Building Project
TSMC and Infineon are making significant strides in the semiconductor industry with the construction of new plants in Dresden, Germany.
The chip giant TSMC is building its first factory in Europe, with a focus on specialty technologies for the automotive and industrial markets. The factory, set to be completed by 2027, is currently under construction, with visible 20 cranes at the site. This project has received strong support from the European Commission, as well as German federal, state, and city governments, with half of the total investment of ten billion euros coming from the Federal Ministry of Economics.
The construction site for TSMC's plant is in Dresden, where Infineon, an already established manufacturer, is also building another plant. Infineon's plant, which will focus on semiconductors for the automotive industry and the renewable energy sector, is expected to start production as early as 2026.
The expansion of Infineon's plant is expected to create around 1,000 new jobs, while the first factory of TSMC in Europe is connected to 2,000 jobs. The construction and ramp-up timeline for TSMC's factory will depend on customer needs and market conditions, with expectations for the second specialty fab's construction to start later in 2025.
However, TSMC is cautious about the business outlook due to uncertainties such as tariff policies affecting planning for the remainder of 2025 and 2026. The TSMC factory's official groundbreaking occurred last August, and work on the plant is currently in progress.
This fab is part of TSMC’s broader strategy to diversify geographically and meet regional demand, particularly for specialized technology applications, complementing its advanced fabs in Taiwan, the US, and Japan. Meanwhile, production at Infineon's plant is set to start as early as 2026, marking another significant step forward for the semiconductor industry in Europe.
The first factory of TSMC in Europe, focusing on specialty technologies for the automotive and industrial markets, is connected to 2,000 jobs and is part of TSMC’s broader strategy to diversify geographically in the business and finance sector, specifically in technology and semiconductor industry. Infineon, an already established manufacturer, is also building another plant in Dresden, focusing on semiconductors for the automotive industry and the renewable energy sector, which is expected to create around 1,000 new jobs and is a significant step forward for the semiconductor industry in Europe, especially in the finance and business sector.
