TSMC’s German project investment reaches $11 billion
Previously, reports claimed that Taiwan Semiconductor Manufacturing Company (TSMC) had established a factory model in Germany, partnering with Bosch, the world’s largest automotive parts supplier, to construct a new wafer fabrication plant in Dresden. Bosch has reportedly pledged to assume responsibility for risks associated with human resources, labor unions, and production efficiency.
According to Bloomberg, TSMC is negotiating the substantial investment required for constructing a plant in Germany, with the possibility of approving the plan as early as August. Its first European wafer fabrication facility will employ a specialized 28nm process tailored for automotive chips. Insiders have disclosed that the new project’s investment is estimated to be around 10 billion euros (approximately 11 billion US dollars). To match this sum and attract strategic investments, the European Commission will greenlight subsidies for relevant countries.
It is understood that, in addition to Bosch, TSMC will collaborate with NXP Semiconductors and Infineon Technologies, providing a broad foundation for the wafer fabrication plant and diversifying investment risks. These partners will assist TSMC in planning and securing national subsidy funds, as well as obtaining policy concessions from local governments in areas such as water and electricity, land, and tax reductions. The entire project’s budget is expected to be at least 7 billion euros, with total investments potentially approaching 10 billion euros. Under these substantial subsidies, it would be difficult for TSMC and its partners’ plans to be rejected.
Although PC gamers may scoff at the 28nm process, many chips used in everyday life adopt even older manufacturing processes. In fact, TSMC vigorously encourages customers to use mature processes to elevate their chips to a 28nm standard. TSMC remains exceedingly cautious; even as negotiations progress to the brink of agreement, unforeseen variables may arise, potentially derailing the plan.
