Spillover Effect from TSMC's Germany Plant: Saxony Cities Vie for Collaboration with Taiwan

Central News Agency Report

(CNA reporter Lin Shang-ying, Berlin, Dec. 11) The TSMC wafer fab under construction in Dresden, Germany, scheduled to begin production in 2027, is generating a significant spillover effect. German media reported on December 11 that numerous counties in Saxony, where Dresden is located, are actively positioning themselves—by cultivating semiconductor talent, planning housing developments, and seeking investments from Taiwanese enterprises and city-level cooperation—to ride the wave of semiconductor-driven economic growth and secure new opportunities for local economies.

The European Semiconductor Manufacturing Company (ESMC), a joint venture between TSMC, Bosch, Infineon, and NXP, is currently constructing a wafer fab in Dresden, with full operations expected by the end of 2027.

Dresden, the capital of Saxony in eastern Germany, has developed close cooperation with Taiwan due to this semiconductor investment project, which exceeds €10 billion (approximately NT$365 billion). Neighboring municipalities are now mobilizing to inject new vitality into their local economies.

The Sächsische Zeitung (SZ) reported on December 11 that eastern Germany faces challenges such as industrial transformation, population aging, and declining competitiveness in traditional industries. For many local governments in Saxony, TSMC’s investment represents more than just a new factory—it could bring supply chain investments, job creation, and population growth. As a result, multiple counties hope to benefit from this development.

Görlitz County is among the most proactive in engaging with Taiwan. County Director Stephan Meyer recently signed a friendship memorandum with Taichung Mayor Lu Hsiu-yen in Berlin. The Sächsische Zeitung noted that for Görlitz County, with only 250,000 residents, partnering with Taichung, a city of 2.8 million, is an extraordinary achievement.

In addition to signing friendship memorandums with major Taiwanese cities, Görlitz County is planning to rezone part of the new industrial zone in Löbau for industrial use to attract semiconductor supply chain companies from Taiwan.

Zittau/Görlitz University of Applied Sciences, located at the tri-border area of Germany, Poland, and the Czech Republic, will launch two new programs in autumn 2024: 'Semiconductor Process and Materials Chemistry' (taught in English) and 'Mechatronic Integration of Production Processes,' aiming to cultivate talent needed after TSMC’s plant becomes operational.

Another actively engaged municipality is Bautzen County. Located about 50 kilometers from Dresden, this region is historically known for mechanical manufacturing and automotive components and is also home to the Sorbs, a German minority group. However, it has faced severe population decline and aging in recent years.

Unlike Görlitz County, which focuses on supply chain investment, Bautzen County is prioritizing attracting talent to settle. With Dresden experiencing increasing housing shortages due to rapid semiconductor industry growth, Bautzen hopes to attract engineers and their families working at TSMC and related companies to reside in Bautzen and commute to Dresden.

To this end, Bautzen recently invited the Taipei Representative Office in Germany to visit the region, introducing existing and future housing resources, plans to offer English-taught and international curricula at the Sorbian Gymnasium Bautzen, as well as local healthcare systems and employment opportunities—aiming to encourage Taiwanese semiconductor professionals and their families to settle in Bautzen County. (Edited by Chen Hui-ping) 1150611