BNR – Taiwanese chipmaker TSMC is optimistic about negotiations about establishing the first European manufacturing facility in Germany.
The company is considering subsidies with the government of the host nation, TSMC’s chairman said on Tuesday. Since 2021, TSMC has been in discussions with the German state of Saxony about establishing a fabrication factory in Dresden. The firm is the largest contract chipmaker in the world.
The EU has approved the EU Chips Act, a 43 billion-euro subsidy proposal to increase chipmaking capacity by 2030. The Act aims to keep up with Asia and the United States.
Mark Liu, Chairman of Taiwan Semiconductor Manufacturing Co, delivered a speech during the company’s yearly shareholders meeting. He stated that the company has previously dispatched officials to Germany several times for discussions about the potential new factory.
“So far, the feeling is good,” Liu remarked. He added that while there were certain holes in the supply chain and labour in Germany, these were being remedied.
“We are still negotiating with Germany on subsidies,” he said. “How much the subsidies will be, that there won’t be conditions for the support.”
According to a TSMC official, the business does not intend to determine whether to proceed before August at the earliest.
Balanced Expansion: TSMC Invests in United States
TSMC is also investing $40 billion in a new factory in Arizona, in the western United States.
The new factory aims to help the US goals for increased domestic chip production. The chipmaker, on the other hand, has raised reservations about the conditions for US semiconductor subsidies.
South Korean chipmakers have also expressed reservations about the terms, which include sharing surplus earnings with the US government. According to industry professionals, the application procedure itself may reveal sensitive business strategies.
Liu stated that the US Department of Commerce (DOC) was “open” to the subsidy terms. He went on to say that TSMC had submitted a “pre-application” last month and that it will keep in touch with the US authorities.
