TSMC to invest about $11bn

Taiwan Semiconductor Manufacturing Co (TSMC) is discussing with partners to invest up to €10bn ($11.04bn) for the construction of a chip fabrication plant in Germany. The joint venture involving NXP Semiconductors, Robert Bosch, and Infineon Technologies AG has an estimated budget of €7bn, including state subsidies, but may end up closer to €10bn, the report said.

TSMC confirmed that it is still assessing the possibility of constructing a fab in Europe but declined to comment further. TSMC has been in advanced talks with Saxony, the region where the plant is expected to be built, with the government reportedly providing support through subsidies.

This move by TSMC to invest in Germany would boost the efforts of the European Union to lessen its reliance on Asian chipmakers. Europe has experienced a chip shortage crisis in recent months, which has exposed its dependence on foreign suppliers. Several countries have been looking to secure semiconductor supply chains and bolster their domestic chipmaking capabilities.

With the construction of the chip fabrication plant, TSMC would have a foothold in Europe, and its partners would benefit from the access to advanced semiconductors for their products. Furthermore, the plant is expected to create jobs and improve the economic landscape of the region.