EU Approves €5 Billion for Dresden Chip Plant

The European Commission has approved a €5 billion state aid package to support the establishment of a new microchip manufacturing facility in Dresden, part of the European Semiconductor Manufacturing Company (ESMC), a joint venture including TSMC, Bosch, Infineon, and NXP. This investment aims to enhance Europe's semiconductor supply chain and aligns with the goals of the European Chip Act, further contributing to digital and ecological transformation. The facility is expected to produce high-performance chips using advanced technology and will serve automotive and industrial applications. It is set to operate at full capacity by 2029, with a production target of 480,000 silicon wafers annually. German Economy Minister Robert Habeck expressed commitment to fast-tracking the project, which coincides with the foundation-laying ceremony attended by Chancellor Olaf Scholz. The initiative is seen as crucial for strengthening Europe's digital sovereignty and supporting small and medium enterprises.