TSMC plans €10 billion chip plant in Germany as US curbs tighten

Taiwan Semiconductor Manufacturing Co. plans to invest €10 billion in a new advanced chip factory in Dresden, a move that would deepen the company’s footprint in Europe while global semiconductor supply chains face fresh pressure from US export controls on China.

The project underscores how major chipmakers are adjusting production strategies as Washington limits shipments of advanced semiconductors and related equipment to Chinese buyers. By building more capacity in Germany, TSMC aims to spread risk across regions and strengthen supply resilience for customers that depend on cutting-edge chips.

Dresden has emerged as a key location for Europe’s effort to rebuild parts of its semiconductor industry. A new TSMC facility there would add to the continent’s push for more domestic chip manufacturing, even as the sector remains heavily tied to Asian foundries and US technology.

The investment also reflects broader geopolitical competition around semiconductors, one of the most strategically important industries in the world. For governments and manufacturers alike, the race is now not only about scale and cost, but about securing supply chains against trade restrictions, shortages, and political risk.