TSMC's first European plant builds momentum for the EU's chip ambitions

Ursula von der Leyen, President of the European Commission, is welcomed by representatives of TSMC at a symbolic ground-breaking ceremony on the future site of a chip factory to be known as the European Semiconductor Manufacturing Company (ESMC). (Credit: Sebastian Kahnert—picture alliance via Getty Images)

The expansion of Taiwan-based TSMC into Europe is going ahead as planned.

The world’s largest contract chipmaker today broke ground on its first European plant, in the German state of Saxony’s capital city of Dresden. At the same time, the European Commission gave its crucial approval to Germany’s €5 billion ($5.55 billion) in state aid for the $11 billion project—the biggest sum so far to be doled out under the EU’s Chips Act rulebook, which took effect last year.