Economists are dubious of subsidies for semiconductor factories, calling them “uncertain bets on the future.”

With this agreement, Europe will be less reliant on Asian chip production: With the help of German subsidies, the Taiwanese company TSMC is investing 10 billion euros in a new facility near Dresden.

It receives criticism from economists.

Economists are also skeptical of the planned subsidies for Taiwanese chip giant TSMC. Christoph Schmidt, the head of the RWI Leibniz Institute for Economic Research, is dubious that the subsidies would have the desired impact on the German economy.

According to him, the state is providing subsidies to only these two enterprises totaling 15 billion euros.

Fratzscher stated that the initiatives might assist eastern Germany in “developing its own economic model and differentiating itself from other regions in Germany” with relation to the sites.

However, this would also need for a welcoming culture, improved infrastructure, and increased funding for research and development in education.

Dresden, Germany will get a new semiconductor manufacturing thanks to TSMC.
The construction of a new semiconductor facility in Dresden, Germany, was announced on Tuesday by Taiwanese chip maker TSMC. A billion-dollar investment has received approval from the management board, according to a statement released by TSMC on Tuesday. The largest semiconductor contract manufacturer in the world is Taiwan Semiconductor Manufacturing Company, or TSMC for short.

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