Taiwan Semiconductor Manufacturing Company, along with three corporate allies, is to go ahead with a €10bn plant in Germany as the world’s largest contract chipmaker seeks to diversify globally in response to customer concerns over geopolitical tension.
The Taiwan-based group has teamed up with automotive supplier Bosch and chipmakers Infineon and NXP to build the factory in the eastern city of Dresden, a statement from the four companies said on Tuesday. TSMC’s board of directors approved an equity investment of up to €3.5bn in European Semiconductor Manufacturing Company GmbH.
The German government has offered TSMC half of the total — €5bn — in subsidies to support the project, according to a person familiar with the details. The economy ministry in Berlin said its support was in line with the criteria of the European Chips Act, adding that it had issued an exemption permit to allow construction to begin quickly.