Taiwan Semiconductor's $11B German Fab Kicks Off with Major Industry Support

Taiwan Semiconductor Manufacturing Co TSM broke ground in eastern Germany on its first European plant, marking the construction of the 10 billion euros ($11 billion) fab in Dresden. The state subsidies will fund close to half of the total expenditure.

The EU approved Germany’s 5 billion euro subsidy for the Dresden fab, Bloomberg cites European Commission President Ursula von der Leyen at the event.

Taiwan Semiconductor has a 70% stake in the plant, which will produce chips for the automotive and industrial sectors.

Taiwan Semiconductor Chief C.C. Wei attended the event jointly with von der Leyen, German Chancellor Olaf Scholz, and the chiefs of Infineon Technologies AG IFNNF, NXP Semiconductors NV NXPI, and Robert Bosch GmbH, which each hold a 10% stake in the venture, the Nikkei Asia reports.

In August 2023, Taiwan Semiconductor, Bosch, Infineon, and NXP Semiconductors initiated the European Semiconductor Manufacturing Company (ESMC). Bosch’s Christian Koitzsch headed ESMC.

EMSC is considering hiring close to 2,000 employees. Taiwan Semiconductor proposes sending hundreds of engineers to Dresden over the next three to five years.

Scholz’s government plans to spend 20 billion euros in investment to drive domestic chip production, including the Taiwan Semiconductor plant, and 10 billion euros in aid for a planned Intel Corp INTC plant in Magdeburg.

Will Taiwan Semiconductor Stock Go Up?

When trying to assess whether or not Taiwan Semiconductor will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $217.5 on Taiwan Semiconductor. The Street high target is currently at $250.0 and the Street low target is $170.0. Of all the analysts covering Taiwan Semiconductor, 8 have positive ratings, no one has neutral ratings and no one has negative ratings.

In the last month, 2 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Taiwan Semiconductor have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Taiwan Semiconductor is 69.18% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Taiwan Semiconductor, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

Price Action: TSM stock traded lower by 0.23% at $171.65 at the last check on Wednesday.

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