“TSMC will decide on German chip factory early next year”

Taiwanese chip maker TSMC will make a decision early next year about building a German chip factory, Nikkei Asia sources said. First, a team of high-ranking employees would travel to the country. Construction could begin in 2024.

The team of senior executives would like to discuss with the German government early next year how much support it wants to give to the chip factory. In addition, discussions should take place with local suppliers to see if they can meet TSMC’s requirements and wishes, writes Nikkei Asia. It would be the second time in six months that high-ranking TSMC employees travel to Germany; ‘Soon after’ the second trip, the company would like to take the plunge.

TSMC already indicated in July last year that it was considering a German chip factory. The Nikkei sources say the plan was put on hold by the Russian invasion of Ukraine, but growing demand from European automakers for chips from TSMC prompted the idea to be further developed. Since the corona pandemic, car manufacturers have suffered from chip shortages, which means they can produce fewer cars than they would like.

The chip manufacturer would plan to focus on 22nm and 28nm chips in the German factory, which would be located close to Dresden. Dresden is about 185 kilometers from Magdeburg, where Intel also wants to build a chip factory. TSMC announced earlier this month that it plans to build an additional plant in the US state of Arizona.