Related countries:
Morocco - flag Morocco

Taiwan considers Czech Republic for semiconductor expansion

The Taiwan Semiconductor Manufacturing Company (TSMC) plans to estabilish a base in the Czech Republic to support the construction and operation of the 10 billion euro (250 billion CZK) project in Germany.

In 2023, TSMC announced its plan to establish a factory in Dresden, Germany, which is expected to attract Taiwanese supply chains to nearby countries such as the Czech Republic. This is due to the geographical proximity to Saxony, the industrial background and good political relations.   TSMC factory will need industrial services, logistics, warehouses, as well as so-called encapsulation of manufactured chips or their testing and development. The Czechs can also supply air conditioning or build clean rooms for dust-free work with chips.

Taiwan's Deputy Minister of Economics Chen Chern-Chyi highlighted the business-friendly climate in the Czech Republic, where the industrial sector accounts for more than 25% of foreign investment. For instance Foxconn's investments in the Czech manufacturing sector amount to over $180 million.

J.W. Kuo, the first chairman of Thaiwan Eastbound Alliance (TeaLa) believes that the Czech Republic has investment potential and suggests setting up an industrial zone for semiconductors  with cooperation from the Czech government . Although the establishment of a semiconductor manufacturing business in the Czech Republic may not occur until beyond 2030, Kuo stated that the supply chain might begin operations sooner, in line with TSMC's goal of completing its German factory by 2025.

TSMC's Dresden plant will operate under the name European Semiconductor Manufacturing Company (ESMC) wherein TSMC holds a majority stake of 70 percent and European partners Bosch, Infineon and NXP Semiconductors each hold 10 percent. The factory will produce chips on 12- to 28nm technology, destined for industry and automakers. 

The article was prepared by the CzechTrade Morocco team.