Taiwan Semiconductor Eyes €10B Chip Plant Debut In Germany

Taiwan Semiconductor Manufacturing Company Ltd TSM discussed doling out up to €10 billion ($11 billion) to build a chip fabrication plant in Saxony, Germany.
The planned venture between TSMC, NXP Semiconductors N.V. NXPI, Robert Bosch GmbH, and Infineon Technologies AG IFNNY IFNNF will include state subsidies and would have a budget of at least €7 billion, entailing total investment likely closer to €10 billion, Bloomberg reports.
TSMC is still evaluating the possibility of building a plant in Europe.
TSMC Chairman Mark Liu told shareholders in 2021 about setting up manufacturing operations in Germany, Europe’s largest economy. The proposed European plant would focus on chips for the automotive sector, CEO C. C. Wei has said.
Similar projects in Germany have sought up to 40% of their funding from subsidies as the European Union attempts to double its share of global semiconductor production by 2030.
The facility, which TSMC could approve by August, would focus on producing 28-nanometer chips.
The critical Apple Inc AAPL supplier makes most of its semiconductors in Taiwan. However, growing concerns over geopolitical tensions and China’s military threats against the island prompted the chipmaker to build more capacity in the U.S. and Japan.
Price Action: TSM shares traded higher by 0.34% at $83.25 on the last check Wednesday.