TSMC talks to Germany about potential new chip plant

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Apple chip partner TSMC is looking to establish a new factory in Germany, where the chip foundry is in negotiations with the government to establish another production plant.

TSMC is known for being a highly sought after chip maker, one that works on Apple Silicon and other Apple chips, as well as for other vendors. As part of a series of construction projects to expand capacity, it appears that there are plans to do so in Europe as well.

It told a senior director of the chip manufacturer Bloomberg Saturday that TSMC talks with the German government about possibly establishing a factory in the country. Comments from TSMC SVP of Europe and Asia Sales, Lora Ho, indicate that negotiations are underway.

Discussions follow after TSMC chairman Mark Liu warned shareholders in June that the possibility of a new facility in Germany had begun to be assessed.

The TSMC has not yet made a decision, but Ho says a number of factors may apply, including government subsidies, demand and the local talent pool. Ho admitted, however, that TSMC has not spoken to Germany about potential incentives, nor where such a facility could be built.

The move is one of a number of construction projects TSMC is working on to build its capacity around the world. This includes a $ 7 billion semiconductor plant in Japan as well as a $ 12 billion facility in Arizona to begin mass production in early 2024.

The talks take place ahead of the introduction of the European Chips Act, an EU strategy arriving in early 2022 to help increase semiconductor production.


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