TSMC to build US$11 billion chip manufacturing plant in Germany
- The deal, which reportedly includes up to US$5.5 billion in subsidies, involves the first European facility for the company, the world leader in advanced chips
- It is a major success for the EU, which has courted the company while trying to avoid both supply-chain bottlenecks and an investment agreement with Taiwan
In a huge boon for European Union efforts to build a cutting-edge microchip supply chain, the Taiwan Semiconductor Manufacturing Company announced plans on Tuesday for a €10 billion (US$11 billion) plant in Germany.
The facility, to be built in Dresden in the country’s east, will begin producing chips for the automotive sector by the end of 2027, the company said.
The project marks the first foray onto European turf for TSMC, the world’s leading maker of advanced chips. The firm will work in conjunction with German companies Robert Bosch and Infineon Technologies as well as NXP Semiconductors of the Netherlands.
European political chiefs have courted TSMC for years, as the EU tries to avoid the sorts of supply-chain bottlenecks that paralysed parts of its economy during the coronavirus pandemic.
The bloc has been seeking ways to attract Taiwanese chip investment without cutting major deals with the self-ruled island’s government.