TSMC decides to build €10bn plant in Germany in summer to produce 28nm semiconductors

Taiwanese giant TSMC often talks about expanding its operations in Europe, but rarely comments on rumours regarding a new plant in Germany. This week, Vice President Kevin Zhang noted that a decision regarding construction of the plant in Germany would be made in a few months.

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European customers will be in high demand for semiconductor products made using 28nm technology as they are in demand for electric vehicle components. The facility in Dresden, if launched, will produce exactly 28nm semiconductors.

TSMC wants a subsidy that would cover up to half of the cost of building the Dresden plant. The problem is that the subsidy normally covers up to 40% of the costs of such projects.

According to preliminary information, the factory in Dresden will cost € 10 billion, that is, the Taiwanese company expects to receive from Germany and the European Union € 5 billion. The TSMC board of directors will make the final decision in August this year. Bosch, NXP Semiconductors and Infineon Technologies may be involved in the construction.

Source: Bloomberg