Taiwanese chip company TSMC has been given the green light for a billion-euro investment in the construction of a new semiconductor factory in Dresden. The company's governing body approved a capital investment of around 3.499 billion euros in a subsidiary, European Semiconductor Manufacturing Company (ESMC) GmbH, in Germany.

In collaboration with Bosch, Infineon and NXP Semiconductors, TSMC plans to invest in ESMC GmbH and provide advanced semiconductor manufacturing services.

The new fab is expected to meet the increasing capacity needs of the automotive and industrial sectors in Europe and strengthen the semiconductor manufacturing ecosystem in Europe. TSMC holds 70% of the shares and Bosch, Infineon and NXP 10% each. The ESMC joint venture is expected to create approximately 2,000 direct skilled jobs.

Construction of the fab is expected to begin in mid-2024 and production in late 2027. Total investment is expected to exceed 10 billion euros, with support from the European Union and the German government. The fab will be operated by TSMC and represents a significant step in strengthening semiconductor production in Europe. I am curious to see how the joint venture will affect competition in the semiconductor industry and whether the shares of $ (+0.43%)TSM (+0.43%), $IFX (-1.35%) and $NXPI (+0.87%) will benefit in the long term. What do you think? How do you assess the growth prospects for the 4 companies?