The Taiwan Semiconductor Manufacturing Company (TSMC), a company specializing in the manufacture of semiconductors, is in discussions with the state government German of Saxony to obtain subsidies in order to build a factory. It would be the first factory of the Taiwanese giant in Europe.
TSMC wants subsidies under the European Chips Act
After pandemic-driven shortages highlighted the risks of depending on the global supply chain for essential technologies, many countries have decided to invest to become sovereign in the production of semiconductors, a sector considered as key for the future.
In this context, the European Union has unveiled a plan worth 43 billion euros to account for 20% of global semiconductor production by 2030. The Old Continent wants to encourage the giants of the sector to invest in its territory and, for this, to grant them subsidies.
It is within the framework of this legislation that TSMC is in talks with the leaders of Saxony, reports the South China Morning Post, who was able to speak with people familiar with the matter. The latter confirmed to him that the discussions were advanced and now included government grants to support investment.
The Taiwanese firm notably reminded the authorities that the cost of its implementation in Germany would be highparticularly with regard to labour, and is trying to find out how much she could benefit from.
Chips for the automotive industry
For their part, Saxony officials recently raised the subject with European Commission President Ursula von der Leyen. CC Wei, the CEO of TSMC, confirmed last January that the company was discussing with its customers and partners the construction of an automotive-focused factory in Europe, depending on customer demand and the level of government support. .
The German factory, if it sees the light of day, would thus be dedicated in the production of semiconductors for the automotive industry, very present in the country. As a reminder, TSMC is the largest semiconductor foundry in the world, and the most valued Asian company. At the same time, it is increasing its efforts to strengthen its presence in the USA And in Japan.
Upstream, Germany is talking to the American giant Intel, which is also looking to get grants to massively expand its activities in the country, but also in the rest of Europe.