Construction of TSMC fab in Germany on track: ESMC president

Berlin, Sept. 14 (CNA) A topping out ceremony was held Monday at the site of a plant being built in Germany by Taiwan Semiconductor Manufacturing Co. (TSMC), indicating that the fab is progressing as planned and within budget, according to the head of a joint venture company in charge of the project.

Christian Koitzsch, president of European Semiconductor Manufacturing Co. (ESMC), said about 2,000 workers from 106 countries are working around the clock at the site in Dresden, and he is confident that construction would be completed on schedule, according to a report by German news outlet Sächsische Zeitung (SZ).

ESMC is a joint venture between TSMC, Bosch, Infineon, and NXP, established to build the advanced semiconductor fab in Dresden, the capital of the German state of Saxony.

The topping out ceremony, or Richtfest as it is called in Germany, being held 25 months after the groundbreaking was an achievement for the construction team, Koitzsch said, according to the report.

A topping out ceremony typically marks the construction milestone of laying the final beam or structural piece at the highest point of a building, and it also honors the construction crew, architects, and engineers.

The ceremony, held on Sept. 14, recognized an auspicious day in Taiwanese culture, while the ritual itself followed German customs. A carpenter gave a speech before breaking a glass for a toast, SZ reported. However, because alcohol is prohibited on the construction site, the glass was filled with water instead, according to the report.

Looking back at the groundbreaking ceremony in August 2024, Koitzsch said ESMC had specifically reminded guests to fill their shovels with soil, as the gesture symbolizes good luck and prosperity in Taiwan, SZ reported.

Koitzsch said that gesture appeared to have had a positive effect, as construction of the fab has been proceeding smoothly, the SZ report said.

The next milestone for the fab will be the installation of the first manufacturing process equipment in the second half of 2027, Koitzsch said, according to the report.

Before production can begin, the interior of the fab's cleanroom will have to be completed, the automated material handling system installed, and infrastructure work completed, including electricity and water supply, according to SZ.

Also speaking at the topping out ceremony, Saxony State Premier Michael Kretschmer said TSMC's decision to build a fab in Dresden was significant, the report said.

The smooth progress of the project, as marked by the Richtfest, showed that TSMC, the Dresden city government, and the Saxony state government had kept their commitments, he was cited as saying.

The mutual trust established during the process would provide a basis for further cooperation, he said, according to the report.

Kretschmer said the state hoped to continue participating in Europe's semiconductor industry initiatives and that more suppliers and companies would settle in Dresden following the European Commission's recent proposal for a Chips Act 2.0, SZ reported.

Meanwhile, Dresden Mayor Dirk Hilbert estimated that 15,000 to 20,000 workers would move to the area by 2030, SZ said.

According to sources, the estimate includes about 600 TSMC engineers, their family members, and personnel from the company's suppliers who are expected to move there in 2027.

The city is preparing to establish a more systematic economic area to meet projected demand for residential, industrial and commercial land, investment promotion, and economic development when fab starts production, Hilbert said, according to the SZ report.

Dresden has also held events introducing Taiwanese culture to local residents and to welcome Taiwanese workers, he said, adding that the city also hopes to host a Taiwanese night market in the future, SZ reported.