Enlarge image
TSMC wafers: High demand
Photo: TYRONE SIU / REUTERS
The world's largest chip manufacturer TSMC is negotiating with key suppliers to set up its first European plant in Dresden in order to benefit from booming demand from the region's automotive industry.
As the British »Financial Times« reports, a delegation is to travel to Germany at the beginning of next year to talk to representatives of the state government about state subsidies.
A second question is how big the factory would have to be to meet demand.
It would be the second trip by TSMC professionals in six months.
People familiar with the matter are therefore convinced that the decision will be made shortly after the trip.
Construction could then begin in 2024.
Last year, TSMC was asked by customers to consider building a plant in Europe, but had to abandon an initial review after Russia's attack on Ukraine.
However, the growing demand from European automobile manufacturers for chips from local production prompted TSMC to take up the idea again, the »FT« quotes its interlocutors as saying.
A decision to build the plant would be an important step for the EU to reduce its dependence on semiconductor imports from Asia, which are badly needed to make smartphones and cars.
Brussels approved €43 billion in subsidies this year to lure chipmakers to Europe.
TSMC's discussions with various material and equipment suppliers are focused on whether they can also make the investments needed to support the facility.
Rising energy costs and higher inflation have already prompted the US chip company Intel to ask the German government for more support for its planned €17 billion plant in Magdeburg.
Intel remains determined to invest in Europe, but the Magdeburg plant must be competitive, it said.
Should TSMC go ahead with building a factory in Dresden, it would focus on 22-nanometer and 28-nanometer chip technologies.
It is still questionable whether there are enough specialists available in-house for the project.
According to the chip manufacturer, it has already sent several hundred engineers to develop the new plants in the USA, and 500 to 600 more engineers to set up the factory in Japan.
Europe, the Middle East and Africa account for around six percent of TSMC production.
mike
