Taiwan Semiconductor said to discuss building $11B German plant with partners
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As Taiwan Semiconductor (NYSE:TSM) looks to expand its global presence, the world's largest chip foundry is reportedly in talks with partners to build a manufacturing fab in Germany.
The global foundry, which produces chips for companies like Apple (AAPL), AMD (AMD) and others, is said to be working with NXP Semiconductors (NASDAQ:NXPI), Infineon Technologies (OTCQX:IFNNY) and Robert Bosch GmbH to build a plant in Saxony, Germany, Bloomberg reported, citing people familiar with the matter.
The plant, estimated to cost â¬10B or roughly $11B, would include state subsidies and have a â¬7B budget, the news outlet noted. If built, the plant would focus on legacy, 28-nanometer chips.
Taiwan Semiconductor (TSM), Infineon (OTCQX:IFNNY) and Bosch did not immediately respond to a request for comment from Seeking Alpha.
Late last year, it was reported that Taiwan Semiconductor (TSM) was considering Saxony, Germany for its first European plant.
Taiwan Semiconductor (TSM) has looked into building a plant in Europe in the past, but company Chairman Mark Liu told investors in June that the company had no "concrete plans" at the time and was still evaluating the possibilities.
In the midst of a global expansion fueled by supply chain and geopolitical concerns, Taiwan Semiconductor (TSM) is in the process of building a $40B plant in Arizona and is in talks to build a second plant in Japan.
News of a possible European expansion by Taiwan Semiconductor comes days after the European Union finalized its 45Bâ¬ ($47B) Chips Act to help the 27-country bloc better compete with the U.S. and Asia for microprocessor supply.
Earlier this week, Infineon (OTCQX:IFNNY) broke ground on a new manufacturing plant in its home country of Germany. The new plant, set in Dresden, will start producing chips in 2026, the company said.
Global semiconductor companies have increasingly looked to Germany as the nation works to boost its domestic chip industry.
Last March, Intel (INTC) said it would invest approximately $88B, or 80Bâ¬, in chip manufacturing in Europe over the next decade, including an $18.6B mega fab in Germany.
The company is reportedly still working with the German government on subsidies for the plant.
In February, Wolfspeed (WOLF) said it would build a new $2.3B plant in Saarland, Germany, producing cutting edge 200 millimeter wafers.
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