In addition to its Germany plant, TSMC also plans to set up another plant in Japan
Taiwanese semiconductor manufacturing company TSMC is reportedly discussing with key suppliers over building its first chip plant in Germany. Specifically, TSMC is planning to build the first European plant in the German city of Dresden. If successful, the chipmaker can capitalize on the rising demand from the German car industry.
TSMC in Talks with Supplier to Build Plant in Germany
According to people familiar with the matter, TSMC will send a team of its senior executives to Germany. The sources noted that the team will make the trip in early 2023 to discuss how the government will support the project. Also, the executive will debate the ability of the local supply chain to meet its needs. Although there is no official statement on the plant yet, TSMC hinted at a potential factory in Germany. The company said:
“We do not rule out any possibility but there is no concrete plan at this time.”
Just last year, TSMC said it was in the early stages of considering the possibility of expanding into EU member Germany. The discussion the company has been having with material and equipment suppliers is based on if they can provide the required investment for the prospective plant. Also, the main focus of the European plant would be on 22-nanometre and 28-nanometre chip technologies.
Per the European Chips Act, the European Commission has set aside 15 billion euros for semiconductor projects. The aim is for the budget to cater to public and private semiconductor projects by 2030. Under the act, the money will be used to increase Europe’s share in the rapidly expanding chip industry.
TSMC’s Vision for Japan
In addition to its Germany plant, TSMC also plans to set up another plant in Japan. The matter was revealed last week by the secretary-general of a Japanese ruling party lawmakers’ group on chip strategy. The executive said the chipmaker is considering a second chip plant in the country. The same as TSMC said about a plant in Germany, the company said it does not rule out the possibility of a factory in Japan, but there are no definite plans yet.
Earlier this month, the semiconductor company said it would triple its Arizona chip plant investment. It said it would triple the investment to $40 billion, marking one of the largest foreign investments in US history.