DRESDEN: The construction of a new chip factory in the eastern German city of Dresden is set to begin on Tuesday with a symbolic groundbreaking ceremony.

German news agency dpa reported that the investment of just over pound 10 billion (US$11.1 billion) is a joint project between Taiwan Semiconductor Manufacturing Company Limited (TSMC) and the firms Bosch, Infineon and NXP Semiconductor, which already have a presence in Dresden.

TSMC is expected to hold a 70 percent stake in the plant, with the other partners each holding 10 percent. The plant will be known as the European Semiconductor Manufacturing Company (ESMC).

Production is set to begin in 2027, focusing on chips for the automotive industry. TSMC’s first factory in Europe is expected to create 2,000 jobs.

German Chancellor Olaf Scholz and European Commission President Ursula von der Leyen are scheduled to attend the foundation stone laying ceremony. The investment by ESMC aims to spur the EU’s strategic shift in semiconductor production. The initia
tive seeks to double Europe’s current share of the global chip market from its present 10 percent.

Source: Emirates News Agency