Despite a stagnant GDP in 2023, Germany remained a top choice for international business expansion. Major companies like Taiwanese chipmaker TSMC and American pharmaceutical giant Eli Lilly and Company chose Germany for significant expansion projects. TSMC selected Dresden for its new semiconductor production facility, valued at approximately EUR 10 billion. Eli Lilly announced a EUR 2.3 billion expansion in Alzey.
Business & investments
TSMC, a leading chipmaker, and Eli Lilly, a renowned pharmaceutical and medtech company, have invested heavily in Germany. Their projects underline Germany’s status as a lucrative destination for foreign direct investment (FDI). Despite expectations of a slight decrease in the number of FDI projects in 2023, large-scale expansions continued. These investments highlight Germany’s economic strength and business appeal.
Germany’s global standing in FDI
Independent surveys have consistently ranked Germany highly for its investment appeal. The country stood fourth globally and first in Europe in Kearney’s annual FDI Confidence Index. In Ernst & Young’s 2023 UK Attractiveness Survey, 62 percent of executives rated Germany among Europe’s “most attractive” countries for foreign investments. Germany’s ability to maintain this confidence amidst international and domestic challenges in 2023 is noteworthy.
The vision behind the appeal
Robert Hermann, CEO of Germany Trade & Invest, commented on the situation. “Projects like the ones being launched by TSMC and Lilly demonstrate Germany’s continuing appeal,” he said. He emphasized Germany’s transition to clean energy, acknowledging short-term challenges but highlighting the long-term benefits of environmentally friendly energy supplies. Major companies are drawn to Germany’s long-term vision and sustainability efforts.
Looking forward
Hermann also remarked on the fundamental confidence persisting through 2023’s turmoil. “Clearly, a fundamental confidence persisted despite the considerable international and domestic turmoil of 2023,” he stated. Most economic forecast groups anticipate Germany returning to positive growth in 2024. This outlook, combined with ongoing large-scale investments, positions Germany favourably for future business expansions.
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