TSMC starts negotiations with Germany to build factory, decision may be announced in August

According to news on May 24, after TSMC previously announced the construction of wafer fabs in the United States and Japan, it was reported that TSMC is considering building fabs in Europe, and Germany is expected to become their first choice.

According to the latest reports, TSMC is negotiating with Germany to discuss building a factory. It is estimated that they may make a decision in August. TSMC senior deputy general manager Zhang Xiaoqiang revealed the news, while a spokesperson from the German economic department also confirmed that relevant negotiations are ongoing.

TSMC had rumors of building a factory in Germany as early as December 2021. At that time, He Limei, senior deputy general manager in charge of Eurasian business, revealed that negotiations were still ongoing. No decision has been made yet. Now, Zhang Xiaoqiang has become the second TSMC executive to disclose the potential construction of a factory in Germany.

According to Zhang Xiaoqiang, they firmly believe that it is necessary to provide customers with diversified supplies, and Europe is regarded as a very important region. Although negotiations to build the factory have not yet concluded, Zhang Xiaoqiang did not disclose any detailed information about factory construction subsidies, investment scale, etc.

According to people familiar with the matter, TSMC may build a factory in Germany and adopt the same joint venture model as it used to build factories in Japan. The decision signals TSMC’s firmer determination to increase its production capacity and supply chain globally.

In the eyes of TSMC, the strategic significance of the European market cannot be ignored. In the context of facing tensions in the global chip supply chain and increased demand for local production capabilities in Europe, TSMC's choice to establish a wafer fab in Europe will help further stabilize the supply chain and provide better support and services.

Currently, we will continue to pay attention to the progress of factory construction negotiations between TSMC and Germany and bring the latest news to readers in a timely manner.

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