TSMC Begins Negotiations on Establishing Semiconductor Factory in Germany

[Asia Economy Reporter Hyungsoo Park] Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), has entered initial negotiations to establish a semiconductor factory in Germany.

Bloomberg reported on the 11th (local time) that Laura Ho, TSMC's Senior Vice President in charge of Asia and Europe, told reporters at a technology forum held in Taipei, Taiwan, "We have started initial negotiations with the German government to establish a semiconductor factory."

TSMC has not yet discussed incentives with Germany or decided on the factory site. Various factors such as government subsidies, customer demand, and talent pool are expected to influence the final decision.

TSMC Chairman Liu Deyin (劉德音) also announced to shareholders in June that the company has begun investigating the establishment of manufacturing operations in Europe.

Most of TSMC's semiconductor production plants are located in Taiwan, but for the past year, the company has been exploring ways to diversify production plants into key countries. This is related to major countries strengthening semiconductor production to overcome issues of semiconductor self-sufficiency and national security.

TSMC is building a $12 billion semiconductor factory in Arizona, USA. It also plans to establish a $7 billion factory in Japan soon.

The European Union (EU) plans to unveil the European Semiconductor Act in the first half of next year as one of its strategies to accelerate semiconductor production.

This content was produced with the assistance of AI translation services.