A registered association (e.V. in German) bluntly named "Silicon Saxony e.V." (est. in 2000) with over 450 members headquartered in Dresden pretty much sums up the infrastructure and ambition.[0][1]
As pointed out the process TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology (fabrication will begin in 2027) is not "cutting edge" but set to satisfy the (local) demand [2] mostly for the automotive industry. I guess a good conservative foothold given the current economic/geopolitical environment, but it's not like an innovation/investing boom or something.
However from a perspective of a young student, Saxony/Dresden - as for now - is pretty inexpensive as compared to Berlin, Hamburg or Munich and has ample opportunities (TU Dresden, Fraunhofer, MPI, Helmholtz Zentrum ...).
[From personal experience I find the people in Saxony (Leipzig, Dresden) have a more deep-rooted skepticism towards the federal government (or any centralized entity ruling over them) which can lead to a good thing - interesting perspectives/lively discussions or depending on your position less good - leaning more to the political (far) right.]
[0]https://en.m.wikipedia.org/wiki/Silicon_Saxony
[2]https://en.m.wikipedia.org/wiki/2020%E2%80%932023_global_chi...