The German government is promoting the establishment of semiconductor production to reduce Germany's and Europe's dependence on chip supply from Asia and to strengthen the resilience of the production structures. TSMC, Bosch, Infineon, and NXP are collaborating on a 10 billion euro semiconductor factory in Dresden, which is expected to create 2,000 jobs and begin production in 2027. The project is part of a larger effort to expand chip manufacturing in Germany, with Intel, Wolfspeed, and Apple also investing in new factories.
These investments aim to lessen the impact of chip shortages on the auto industry and boost Europe's chip production capacity. The Dresden project has received substantial government subsidies, leading to criticism and concerns about competition.
The success of the project's job creation potential remains uncertain, as other companies like Infineon and Intel have announced job cuts in the industry. However, the booming demand for chips driven by the rise of artificial intelligence fuels optimism for the future of semiconductor investments.
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