Bosch just opened a new chip fatory in Dresden.
https://www.bosch.com/stories/bosch-chip-factory-dresden/
Globafoundries and Infinion are there, too.
https://www.infineon.com/cms/dresden/en/
The Dresden/Saxony area is said to have in semiconductor manufacturing "2,300 companies with roughly 60,000 employees active in the industry in Saxony and generating revenues of some €16.5 billion last year."
Apple invests heavily in a Chip design center in Munich.
https://www.apple.com/uk/newsroom/2021/03/apple-to-invest-ov...
Customers for the TSMC chips would be in the automotive industry.
Tesla builds a new EV factory in Brandenburg near Berlin... Volkswagen has several factories working on current and future EVs, ... for example the ID.3 is being manufactured in Dresden, too.
https://www.volkswagen-newsroom.com/en/press-releases/id3-st...
However, after 1990, the plants have been closed and most of the skilled people have gone to USA, Canada or Western Europe.
So for the present time you might be right, it could be difficult to find enough experienced workforce, unlike many years ago.
Personal cost in semi factories is much less relevant (and you actually want the higher-cost employees because they know how to drive the multi-billion dollar machines)