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TSMC relocation to Dresden: huge opportunity for regional development

Thomas Schmidt (CDU), Minister for Structural Development, Rural Areas and Construction in Saxony. Schmidt sees the establishment of the Taiwanese semiconductor manufacturer TSMC as a "huge opportunity" for the greater Dresden area and the entire state / Photo: Kristin Schmidt/dpa-Zentralbild/dpa
Thomas Schmidt (CDU), Minister for Structural Development, Rural Areas and Construction in Saxony. Schmidt sees the establishment of the Taiwanese semiconductor manufacturer TSMC as a "huge opportunity" for the greater Dresden area and the entire state / Photo: Kristin Schmidt/dpa-Zentralbild/dpa

Regional Development Minister Thomas Schmidt sees the establishment of the Taiwanese semiconductor manufacturer TSMC as a huge opportunity for the greater Dresden area and the entire Free State.

Regional Development Minister Thomas Schmidt sees the establishment of the Taiwanese semiconductor manufacturer TSMC as a "huge opportunity" for the greater Dresden area and the entire Free State. "Suppliers are definitely coming here and other investors are also looking at this region," he said on Thursday at the microelectronics location conference in Radebeul. He sees financial support from the state "here immediately for the next process". The ministry could support the project with existing funding instruments, such as the Regioplan funding guidelines for the development of commercial sites and regional development (FR-Regio) for inter-municipal cooperation.

The project also poses major challenges for Saxony and the region, including in terms of infrastructure and housing. Dirk Hilbert (FDP), Lord Mayor of Dresden, emphasized the central role of cooperation with the surrounding municipalities. With the establishment of TSMC and the expansion of production at Infineon, the Dresden region could "make the step into the Champions League" if the city and region work closely together, he said.

According to Hilbert, the framework conditions must be created at an early stage. Such decisions are made quickly and then there is no time for years of development and approval processes. "We have been planning the infrastructural development for years so that we can now actually implement it in the short time available."

TSMC announced in the summer of 2023 that it would build a semiconductor plant in Dresden by 2027. It is to be built as a joint venture with Bosch, Infineon and NXP Semiconductor under the name European Semiconductor Manufacturing Company (ESMC) in the Airportpark industrial estate, where Bosch already manufactures microchips. 2000 new jobs are to be created. The Group expects the investment sum to exceed ten billion euros. Half of this is expected to be funded by the German government.

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