TSMC and partners reportedly plan to invest €10 Billion to build a German Fab

It looks like TSMC are planning to build their first European fab

TSMC are reportedly in talks with partners to build a $10 billion facility in Saxony, Germany, the company’s first European chip fabrication plant. The venture is said to see TSMC partner with NXP Semiconductors NV, Robert Bosch GmbH, and Infineon Technologies, with the project being likely to cost €10 billion. 

While TSMC appears to be in advanced talks about their planned Saxony site, it remains to be seen if TSMC’s European expansion will go ahead. TSMC wants to secure huge subsidies before committing itself to building their planned Saxony site, and has allegedly asked for up to 40% of the total funding required to make the facility happen. 

TSMC are likely to make a decision about their European expansion plans in August, and if their planned Saxony site is created, the facility is said to be focusing on 28nm manufacturing. While the site will move to more advanced lithography nodes over time, TSMC’s Saxony site will not bring TSMC’s leading-edge manufacturing technologies to Europe.

TSMC’s Saxony fab will likely be one of the first major projects to receive funding from the EU Chips Act, which is set to invest $43 billion into the European Union’s semiconductor manufacturing capabilities. Should TSMC decide to invest in Saxony, it would be a huge win for Europe and its semiconductor manufacturing sector.

You can join the discussion on TSMC’s plans to build a German fab on the OC3D Forums.