Taiwan Semiconductor Manufacturing Company (TSMC), a Taiwanese semiconductor development company, could open its first chip plant in Europe for the manufacture of 22 and 28 nanometer chips. According to Financial TimesTSMC is making progress in key talks with suppliers to locate its first factory in Dresden, Germany, although the firm says it does not have a defined plan.
As revealed by the aforementioned media, a group of senior executives from the Taiwan Semiconductor Manufacturing Company will travel to Germany early next year to “discuss the level of support with the government” of the country, as well as “the capacity of the local supply chain to meet their needs”. TSMC is also looking check if suppliers of materials and equipment can afford the necessary investments for the operation of the plant.
This will not be the first time that a team of TSMC executives has moved to Germany to negotiate the construction of a plant in Europe. The trip scheduled for early 2023, in fact, will be the second in six months, and it is expected to be the one that allows the company to make the final decision. TSMC, for its part, has detailed that they do not rule out “any possibility”. They assure, however, that “there is no concrete plan at this time.” In any case, and If negotiations progress favourably, the plant could open in 2024.
TSMC has already considered building a chip plant in Europe in the past
Interestingly, it is also not the first time that TSMC plans to expand its business to the European market. The company has been trying to advance in the construction of a plant in Europe since 2021. However, they were halted by negotiations because of the war in Ukraine. Now they take them back due to high demand for locally produced chips from European vehicle manufacturers. Precisely, something that will also benefit the EU and its intention to reduce its dependence on the Asian market.
To TSMC, furthermore, You are concerned that local suppliers cannot make the necessary investments for the correct operation of the plant. Some companies that would supply the chipmaker, however, have already confirmed their intention to back the company. “We would try to support our customers. We would not let them walk alone in the desert,” said an executive from a German provider that could partner with TSMC.
The semiconductor manufacturer also will have to deal with a larger “labor force”, as is happening with several of the plants that are opening in different countries. The company, in fact, had to send hundreds of engineers in order to advance the construction of the factory in the United States. It also confirmed its intention for 500 and 600 more employees for the plant in Japan.