Home Technology TSMC is planning a plant in Germany for 10 billion euros

TSMC is planning a plant in Germany for 10 billion euros

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TSMC is planning a plant in Germany for 10 billion euros

TSMC is about to implement a chip manufacturing project in Germany
(photo: TSMC)

Taiwanese chip maker TSMC is in talks with European partners to lend 10 billion euros to build a plant in Saxony, Germany. It is a joint venture between TSMC, NXP Semiconductors NV, Robert Bosch GmbH and Infineon Technologies AG.

It is assumed that the project will receive state subsidies, and its budget will be at least 7 billion euros, Bloomberg claimed, citing informed sources who wished to remain anonymous. The total investment is likely to be around 10 billion euros.

The final decision to build the plant has not yet been made and plans are subject to change. TSMC’s press office said the company is still evaluating the possibility of building a plant in Europe, without going into details. Representatives of NXP, Bosch, Infineon and the German economy ministry declined to comment on the project with TSMC.

The Taiwanese contract chip maker has been mulling the possibility of opening a manufacturing facility in Germany, Europe’s largest economy, for years. Mark Liu, chairman of TSMC’s board of directors, revealed these plans to shareholders as early as 2021. According to CEO Ci Ci Wei, the European plant will specialize in the production of chips for the automotive sector.

The facility in Germany, for which TSMC may receive a building permit in August this year, is expected to produce 28-nanometer chips. If the project is approved, it will be TSMC’s first plant in the European Union.

TSMC is the world’s largest contract semiconductor manufacturer and a major chip supplier to Apple. The company manufactures most of its products in Taiwan, but has recently begun expanding into the US and Japan in response to customer concerns about geopolitical tensions and the risk of potential conflict between China and Taiwan.

Earlier, the EU adopted the European Chips Act, which provides state support to the European semiconductor industry for over 43 billion euros. On May 2, a groundbreaking ceremony was held in Dresden for Infineon’s semiconductor plant. GlobalFoundries and Bosch also manufacture in the administrative center of Saxony.

Chipmakers typically build factories in clusters, allowing high-value enterprises to take advantage of existing infrastructure and labor.

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