There are new rumors about a possible TSMC factory building in Germany. However, a so-called “quiet period” prevails ahead of the new quarterly figures, which means the Taiwanese chipmaker does 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.
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, as 67% of chips are made with structures 90 nm and larger, 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 đŸ˜‰.
Update #1 (03/18/23): Improved discussion
After constant back and forth, the prospect of a German TSMC factory now seems to be looking pretty good. In addition to the new Rumors from Taiwan As the mainstream media is now reporting South China Morning Post as well as Reuters Far-advanced discussion for one Factory building in Dresden.
It should only be about the little things that might matter – incl Amount of subsidy and other subsidies from the state of Saxony, the state and the EU. If all parties agree on this, an officer The announcement of the project is not far away stay away
Update #2 (05/06/23): Bosch, Infineon & Co. Cooperation with
A report by Bloomberg (Hinter Paywall) According to TSMC, a decision for or against a location in Germany could be made as early as next August According to this, the Taiwanese chip maker could implement the project together with companies already operating locally. including Bosch, Infineon and NXP – TSMC is said to have already contacted the trio.
Probably at least 7 billion in conversation, but more likely Even up to 10 billion USD Amount of investment. The state should also grab a bigger chunk of it to boost chip production in the country. However, when asked by Bloomberg, neither company would comment on the matter.
up to date [08.08.2023]: location decision
At a recent board meeting, TSMC gave the go-ahead for the Dresden location. A joint venture was announced at the same time TSMC, Bosch and NXP. Accordingly, “Silicon Saxony” will have one Modern 300-millimeter factory Set up for semiconductor production to cover future chip requirements. up to End of 2027 Around 2,000 new jobs will be created at the site when construction begins in the second half of 2024. After all, 40,000 wafers are supposed to roll off the assembly line there every month. So far it is not clear how much the investment will ultimately be. This will be clear only when the level of government subsidy is determined. Now you go from here Up to 5 billion euros Which the EU Commission must accept.
“With the TSMC settlement, Saxony’s reputation as a European center for semiconductor high technology will be strengthened globally. TSMC’s commitment will attract other international companies and, above all, other experts. In this context, Saxony will be a headquarters address for design companies currently being established by Bosch, Infineon, Nordic Semiconductor, NXP Semiconductors and Qualcomm, which will produce chips based on RISC-V.
Dirk Rohrborn, Chairman of the Executive Committee of Silicon Saxony E. V
Original post on October 05, 2022
formula
For better legibility, the simultaneous use of masculine, feminine and different language forms (m/f/d) is avoided. All personal titles apply equally to all genders.
