Amid the ongoing tension in the Taiwan Strait, the German Ministry of Economic Affairs announced on Monday (November 11) that a deputy minister will visit Taiwan this week to hold talks with Taiwanese government officials and corporate executives, as well as visit a chip factory owned by TSMC.
According to a statement from the German Ministry of Economic Affairs, the Taiwan-Germany Economic Cooperation Meeting will take place on Tuesday in Taiwan. Deputy Minister Udo Philipp, representing Minister Robert Habeck, will attend the meeting, with the focus this year being on cooperation in the semiconductor sector.
Following President Lai Ching-te’s inauguration in Taiwan, the Chinese Communist Party has increased military, economic, and diplomatic pressure on the island. Last year, China reacted strongly when German ministerial-level officials visited Taiwan to expand technological cooperation.
The German Ministry of Foreign Affairs quoted Philipp as saying that both Germany and Taiwan aim to work together to enhance the flexibility of global supply chains and promote economic diversification in the Asia-Pacific region.
“At the same time, we also hope to encourage Taiwanese companies to expand their participation in Germany and the European Union,” he added. Philipp welcomed TSMC’s involvement in building a €10 billion (US$10.7 billion) chip factory in the eastern German state of Saxony.
TSMC is the world’s largest chipmaker. On August 20, TSMC officially broke ground for its first European factory in Dresden, eastern Germany. German Chancellor Olaf Scholz, European Commission President Ursula von der Leyen, and TSMC Chairman Mark Liu attended the groundbreaking ceremony.
The Dresden project is a joint venture called the European Semiconductor Manufacturing Company (EMSC) between TSMC, U.S.-based Infineon Technologies AG, Dutch NXP Semiconductors N.V., and German Robert Bosch GmbH. TSMC holds a 70% stake in the company, with the other three parties each owning 10%.
The factory is expected to begin operations in 2027 and will create 2,000 jobs. It will produce 40,000 chips per month for use in automotive, industrial, and consumer products.
Recently, tensions have intensified between Germany and China. In September, Germany sent its first warship in 22 years to pass through the Taiwan Strait, disregarding warnings from Beijing. The two sides also have differences on trade and the Russia-Ukraine conflict.
Last week, the U.S. Indo-Pacific Command Air Force Commander Kevin Schneider stated in an interview with NBC News that over the past five months, the intrusions by Chinese military aircraft around Taiwan have tripled, indicating an attempt to create a “fait accompli” situation.