‘TSMC will make a decision on German chip factory early next year’

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

The team of senior executives would like to discuss with the German government early next year how much support it wants to provide for the chip factory. In addition, discussions should take place with local suppliers to see whether 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 have traveled to Germany; The company would like to finally make the decision ‘shortly after’ the second trip.

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

The chip manufacturer is said to be planning 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 wants to build an additional factory in the American state of Arizona.