TSMC breaks ground on first European plant

One of the world's largest chipmakers, Taiwan Semiconductor Manufacturing Company, broke ground on its first European factory on Tuesday.

The plant in the eastern German city of Dresden is a joint venture with auto-parts manufacturer Bosch and other investors. It is being built with an investment of 11 billion dollars, about half of which was put up by the German government.

German Chancellor Olaf Scholz said at the groundbreaking ceremony that Europeans are "dependent on semiconductors" for the sustainable technologies of the future. He added that they should not be forced to rely on "other regions" of the world for the supply.

Taiwan is home to a powerhouse semiconductor industry, and Taiwan Semiconductor Manufacturing Company has responded to regional pressures by widening its operations to areas that include Japan and the US.

The move comes as Western countries are redoubling efforts to bring chip production closer to home.