TSMC (2330. T.W.)’s chairman said Tuesday that the business is “good” about talks for a prospective first European factory in Germany and is considering subsidies with the host country’s government.
Since 2021, TSMC, the world’s largest contract chipmaker, has been talking to Saxony about erecting a fabrication plant, or “fab,” near Dresden.
The EU approved the E.U. Chips Act, a 43 billion euro ($46.07 billion) subsidy plan to increase chipmaking capacity by 2030 to catch up with Asia and the U.S.U.
At the company’s annual shareholders meeting, Taiwan Semiconductor Manufacturing Co. Chairman Mark Liu said executives had visited Germany several times to discuss the new plant.
“So far the feeling is good,” he added, adding that “gaps” in the supply chain and German labor were being remedied.
“We are still discussing with Germany on subsidies, how large they will be, and that there won’t be conditions for the support. Liu said Germany is debating this.
Last month, a TSMC executive suggested the business would not decide to proceed until August.
TSMC is investing $40 billion in a new plant in Arizona, backing Washington’s goals for greater chipmaking at home, but it is concerned about U.S. semiconductor subsidy conditions.
South Korean chipmakers are likewise concerned about the requirements, which include sharing surplus profits with the U.S. Industry sources say the application procedure could reveal business strategy.
Liu claimed the U.S. Department of Commerce (DOC) was “open” to subsidy conditions and that TSMC had submitted a “pre-application” last month and would maintain “positive communication” with the U.S.
The DOC will protect confidential business information and only share extra profits if projects surpass predicted cash flow.
