Dresden will become Europe's semiconductor hotspot: construction plans worth billions!

Dresden will become Europe's semiconductor hotspot: construction plans worth billions!

A new chapter in semiconductor production is opening in the heart of Saxony. The cities of Dresden and the surrounding regions are well on the way to becoming a true hotspot for microelectronics. And the news is no coincidence: this is how giants like ESMC, Infineon, Globalfoundries and FMC teamed up to shape the future of chip production.

The focus is on the new semiconductor factory of the joint venture European Semiconductor Manufacturing Company (ESMC), in which the Taiwan Semiconductor Manufacturing Company (TSMC) holds a 70% stake and Bosch, Infineon and NXP each hold a 10% stake. This investment of over 10 billion euros will receive massive support of up to 5 billion euros from the German state through the Federal Minister of Economics Robert Habeck was officially announced.

Planned production sites and local impacts

The ESMC factory in Dresden is scheduled to start operations in 2027 and will produce chips for the automotive industry and machine controls. The production capacity will be almost 500,000 wafers annually, which will make the factory one of the most important locations in Europe for semiconductors. This expansion will create up to 2,000 direct jobs and create up to 11,000 indirect jobs in the area. In addition, small and medium-sized companies and start-ups have preferential access to the new production capacities, which could help the regional economy flourish.

It is also important to mention that Infineon is already working on a new Smart Power Fab in Dresden, which is scheduled to start production in autumn 2026. The company is investing around 5 billion euros here and receiving around 1 billion euros in funding. Globalfoundries is also planning to expand in the region with an investment of 1.1 billion euros. This shows that the Dresden location is not only growing, but is also considered an important center for the European semiconductor industry.

EU chips law and the challenge of a shortage of skilled workers

The background to these massive investments is the EU Chips Act, which aims to increase Europe's share of global semiconductor production from the current 8-9% to an impressive 20% by 2030. This is essential to ensure the competitiveness and technological sovereignty of the European Union. But the challenges are significant. It is estimated that the industry is already lacking thousands of skilled workers, and a gap of up to 75,000 employees is expected by 2030. Experts recommend reforming training in the semiconductor industry and attracting international talent.

In addition, the promotion of training programs and the establishment of competence centers in EU countries addresses a key issue in combating the shortage of personnel. The introduction of practice-oriented curricula is intended to inspire young people for the industry and secure the urgently needed young talent.

Overall, it shows that Dresden and the entire Saxony region are flourishing as beacons in semiconductor production. The major investment push will not only support technological advances, but also boost the local economy and pave the way for a solid future in one of the most crucial industries of our century.