The European Commission has approved €5 billion in German state aid to support the construction of a €10 billion chip manufacturing plant in Dresden by the European Semiconductor Manufacturing Company (ESMC), a joint venture led by Taiwan Semiconductor Manufacturing Company (TSMC) with Bosch, Infineon, and NXP. This initiative, part of the EU Chips Act, aims to bolster Europe’s semiconductor supply chain and reduce dependency on other regions amid geopolitical tensions and post-pandemic disruptions. The plant, which will produce high-performance chips primarily for automotive and industrial sectors, is expected to be operational by 2027 and will create 2,000 direct jobs. It will serve as an open foundry, allowing various customers to order specific chips, enhancing the EU's digital sovereignty and resilience. German Chancellor Olaf Scholz emphasized Europe's need for semiconductor independence amid global supply chain disruptions and geopolitical tensions. The Dresden plant is part of TSMC’s broader strategy, which includes new facilities in the U.S. and Japan.