TSMC coming to Dresden: billions well invested?
The Taiwanese corporation TSMC is building a new semiconductor plant in Dresden. TSMC has a market share of almost 60 percent in the semiconductor sector, which is vital for microelectronics. Germany has agreed to provide five billion euros in subsidies for the plant after promising US company Intel ten billion for a plant in Magdeburg in June. Commentators discuss how much sense the subsidy policy makes in the context of "de-risking" vis-à-vis China.
Germany moving to reduce its dependence
Polityka voices understanding for the subsidy policy:
“It is no coincidence that our western neighbour is so generous towards private companies. On the one hand, Germany needs semiconductors, for example for its automobile companies or its prospering mechanical engineering industry. On the other hand, it has no efficient manufacturers of such key components itself. In the meantime, first the pandemic and then the Russian aggression against Ukraine have convinced German politicians that they cannot rely on imports for strategically important products. Neither from China, which could attack Taiwan at any time, nor from Taiwan itself, whose future is unfortunately difficult to foresee.”
Expensive subsidy contest
At a cost of five billion euros in subsidies the settlement is far too expensive, criticises the Rheinische Post:
“That’s 2.5 million euros for every new job. Habeck sees the new factory as proof that Germany is an attractive location. The opposite is the case: energy costs, approval procedures and bureaucracy deter companies that want to invest. TSMC is only coming here because the German taxpayer is footing half the cost. US company Intel is also having a third of its investment in Magdeburg paid for by the state. Where will this subsidy contest with other states lead?”