It is reported that TSMC's board of directors has decided to build a factory in Dresden, Germany, with a subsidy of 5 billion euros from the government.

CTOnews.com August 7 news, the German media "Business Daily" quoted government sources as saying that TSMC's board of directors will decide to build a factory in Dresden, Germany.

Sources said that the German government will spend 5 billion euros (CTOnews.com Note: currently about 39.35 billion yuan) to support the construction of the factory. Germany's economy ministry declined to comment.

TSMC is said to have been in talks with the German state of Saxony about building a plant in Dresden since 2021, according to Tu Yuan Pexels. The company will operate the plant in a joint venture with partners Bosch, Infineon and NXP, the source said.

After board approval, TSMC plans to use the Dresden plant to sign a financing letter of intent with Berlin, which will eventually be decided by the European Commission.