TSMC's plans for chip plant in Germany
TSMC's board of directors is reportedly set to approve the Taiwan Fab operator's plans to build a chip plant in Germany, with the foundry set to receive billions of euros in subsidies from the German government. The foundry's partners in the initiative include automotive chip suppliers Bosch, Infineon, and NXP.
The German government has reportedly agreed to provide TSMC with €5 billion in subsidies for the project, which would operate as a joint venture between the fab operator and its partners. The move would be a departure from TSMC's usual practice of running its fabs independently, with the project aligning with the European Union's initiative to increase chip production in Europe and reduce dependence on Asian suppliers.
Discussions between TSMC and the German state of Saxony about building the fab have been ongoing since 2021. Reuters, citing unnamed sources, says that the project has now been approved by TSMC's board, and that the announcement of the venture's approval and details of government funding will be made after the board decision.
TSMC and the German government have yet to formally confirm the plans, but TSMC has previously expressed its interest in building a fab in Germany.
"The factory is planned to focus on manufacturing microcontrollers using time-proven process technologies and will therefore contribute to keeping Europe on the cutting edge of chip production," the German state of Saxony, which is involved in the project, says on its website.
Further details about the project are expected to be made public after TSMC's board decision.
Check out our fab tour of the TSMC facility in Hsinchu, Taiwan.
