TSMC is already building a plant in the US that will produce 5- and 4-nm chips for Apple, Nvidia, and other tech companies. While this plant is expected to be ready at the end of next year or the beginning of 2024, a new report indicates that the iPhone chipmaker, TSMC, is in talks in Europe to build its first manufactury in Germany.
According to Nikkei Asia, Taiwan Semiconductor Manufacturing Co. is “in advanced talks with key suppliers about setting up its first potential European plant in the German city of Dresden.” But instead of focusing on hyper-high-tech chips for smartphones and computers, this factory will focus on the booming demand from the region’s car industry.
The Taiwanese company is sending a team of senior executives to Germany early next year to discuss the level of government support for the prospective plant as well as the capacity of the local supply chain to meet its needs, according to people familiar with the matter.
The trip will be the second in six months by TSMC executives and a final decision on whether to invest billions of dollars in a plant, which could begin construction as early as 2024.
The decision to build a plant in Europe was halted after an initial review following the invasion of Ukraine early this year. But with growing demand from Europe’s carmakers, the manufacturer decided to revisit its talks.
The publication says TSMC would focus on 22-nanometer and 28-nanometer chip technologies, similar to those made in a factory it’s developing with Sony in Japan. Nikkei Asia notes that Europe, the Middle East, and Africa account for roughly 6% of TSMC sales, while the group makes 65% from North America.
To the publication, a TSMC spokesperson said: “no possibility” was being ruled out regarding a potential plant in Dresden.
