Why Berlin is heavily subsidizing microchip production | DW Business

Taiwanese chipmaker TSMC has approved a plan worth $3.8 billion (€3.47 billion) to build a factory in the eastern German city of Dresden, it announced after a board meeting on Tuesday.
TSMC is the world's largest contract chipmaker. It has been in talks with the German state of Saxony, where Dresden is located, since 2021 about building a fabrication plant, or "fab."
The plant, due to open in 2027, is set to have a capacity of 40,000 300-millimeter wafers per month.
"With this TSMC investment, another global player in the semiconductor sector is coming to Germany. This shows that Germany is an attractive and competitive location," German Economy Minister Robert Habeck said in a statement.
TSMC is also investing $40 billion in a new plant in the western US state of Arizona. The chip giant said in its statement on Tuesday that it approved a capital injection of not more than $4.5 billion for that plant as part of the overall investment.

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