TAIPEI (Taiwan News) — The German Trade Office Taipei said Taiwan and Germany’s industries are highly complementary, with strong potential to deepen cooperation in semiconductors, drones, and satellite technologies, CNA reported.
Taiwan’s exports to Germany reached NT$67.8 billion (US$2.12 billion) in the first quarter, up 28.3% year on year, according to the Ministry of Finance. Exports of electronic components increased 71.2% to NT$15.7 billion, while ICT products rose 20.4% to NT$17.8 billion.
Taiwan’s exports of electronic components to Germany mainly include wafers, memory chips, and hybrid integrated circuits, which integrate multiple electronic components into a single package.
Taiwan’s imports from Germany fell 5.5% year on year to NT$99.8 billion in the first quarter, the ministry said. However, imports of precision machinery and equipment rose 24.1% to NT$20.3 billion, some of which are used to support Taiwan’s semiconductor manufacturing.
TSMC has partnered with Bosch, Infineon, and NXP to set up European Semiconductor Manufacturing and build a wafer fab, which broke ground in Dresden in August 2024. The facility is expected to begin production next year, focusing on 28 nm to 12 nm chips for Europe’s automotive and manufacturing sectors.
TSMC said the fab will use FinFET technology, a 3D transistor design that replaces flat transistors to improve performance and reduce power use. The facility will have a monthly capacity of around 40,000 12-inch wafers and is expected to create about 2,000 jobs.
Dresden has developed a semiconductor cluster that has attracted about 90,000 talent, the office said. It added that TSMC has established a chip design center in Munich, which has been operating since the third quarter of last year.
Beyond semiconductor cooperation, the office also seeks to deepen ties with Taiwan in the drone sector. Taiwan exported 107,433 UAVs to Europe last year, a more than 40-fold increase from 2024. It also exported about 136,000 drones to Europe in the first quarter of this year.
Modern warfare has shifted toward drones, unmanned vessels, and human–machine coordinated operations. The office highlighted unmanned vehicles with non-China components have become a procurement priority for European governments and companies.
The office said Taiwan has strengths in hardware manufacturing and system integration, while Germany has strong capabilities in software control, sensing, and aerospace materials. It noted the two sides are highly complementary in drone production.
