The rumor of the last few years is alive again: According to media reports from Asia, the construction of the TSMC factory in Germany is virtually certain. TSMC does not comment on these statements, the manufacturer is in the so-called quiet period anyway, before the quarterly figures good chances as a location
Germany was last seen as TSMC's favorite, although TSMC's boss always emphasized that negotiations were still ongoing. The international community in Europe is trying to attract top-class companies to the region via the EU Chips Act in order to be able to master the ambitious goal of once again being responsible for around 20 percent of global semiconductor production.
Germany has a good chance here. Intel was one of the first companies to jump on this last year. In a conversation with journalists last week, Pat Gelsinger explained that negotiations about the details of the factories in Magdeburg are in the final stages and should be completed shortly. According to the data available so far, Intel will receive at least 40 percent funding, and construction is scheduled to start in the first half of 2023.
Now or never!?
In the end, it could also be a question of time that is now forcing TSMC to act. Because the previous EU Chips Act only provides for a sum of 43 billion euros and would be used up quickly if only a handful of major projects were started. Industry representatives are therefore already demanding a much larger sum, otherwise the goal of a 20 percent market share is doomed to failure from the outset. At an event organized by Globalfoundries, which will also be expanding in Europe through the EU Chips Act, NXP boss Sievers named a sum of 500 billion euros that would be needed to land there.
Germany therefore launched an additional package in the spring to attract chip manufacturers. TSMC recently stated that it would only decide whether it makes sense to build a factory there based on customer requirements in the region. In the end, however, it should be the mixture of both plus other factors. After a new building in the USA and Japan, however, Europe would be one of the missing links at TSMC – after all, sales in Europe are just ahead of Japan.