TSMC: New chip factory could come to Germany

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There are new rumors about a possible TSMC factory building in Germany. However, a so-called “quiet period” prevailed shortly before the new quarterly figures, meaning the Taiwanese chipmaker did not want to make any official comments. But what is the current status of a German TSMC factory?

Taiwan Semiconductor Manufacturing Company, TSMC for short, is responsible for the majority of all semiconductors and chips worldwide. The company makes processors for Apple, Qualcomm, AMD and Nvidia. According to the latest rumours, TSMC may now set up a factory in Germany alongside Intel.

This was the first rumor about it Already last year, but since then the topic has been around again and again. TSMC is interested and serious about a factory in Europe and specifically in Germany, but there is no official statement or decision – negotiations are ongoing. The latest status as of June 2022 is: Yes No specific plans For factories in Europe.

Planning is still in the early stages

The United Daily News According to a Taiwanese newspaper, TSMC has not yet made a final decision. As DY Liu, a TSMC chairman, explained, the company is still in one “A factory in Germany in very early stages of testing”. At this year’s shareholders’ meeting, further consideration should be given to the position.

TSMC may then fall back on the European chips law, which was introduced in February. As demand for chips continues to grow, especially for the Internet of Things, robotics, 6G communications, quantum computers, etc., the EU aims to account for 20% of global semiconductor production again by 2030.

Could a TSMC factory in Europe look like this? – Image: Taiwan Semiconductor Manufacturing Co., Ltd

However, since the €43 billion “pot” is likely to be used up quickly, there could be a race for public funds. Therefore, Germany has put together its own additional package to attract chip makers.

For example, the planned Intel factory in Magdeburg will cost about 17 billion dollars and, according to the current situation, 40% will be covered by subsidies. Construction can begin as soon as possible First half of 2023 Maybe, the first chips should roll off the assembly line from 2027.

Does the industry need any chips?

However, there has been some criticism from experts and the industry about the lack of funding for the announced target of 20% market share. There is no need for the smallest structure size, since 67% of chips are made with a structure size of 90 nm or more, 21% are between 22 and 65 nm – so Iris Plöger vom BDI (Federal Association of German Industry).

Ultimately, TSMC may build factories in Europe and Germany depending primarily on customer demand in the respective locations. After the US and Japan, Europe would be the perfect location for another factory. In the end, the only question that remains is whether TSMC will be able to cope with the German bureaucracy 😉.

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leonardo Jiyaza …primarily responsible for the field of smartphones and mobile devices, but also examines other hardware highlights such as cases, processors and motherboards. Additionally, it ensures high quality images in our test reports.

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