The facility will focus on developing 28-nanometre chips. Credit: Jorge Salvador on Unsplash.

Taiwan Semiconductor Manufacturing Company (TSMC) is in talks with partners to build a semiconductor fabrication facility in Saxony, Germany with up to $11bn investment, reported Bloomberg, citing sources.

TSMC’s partners in the project include NXP Semiconductors, Robert Bosch and Infineon Technologies.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

According to the sources, the project would cost at least $7.75bn, with the total investment likely closer to $11bn, and would involve government subsidies.

The plan is still in the works and could still change, they added.

Nina Kao, a TSMC representative, said the chip maker is still weighing the possibility of setting up a plant in Europe.

Kao did not provide any other detail.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In 2021, TSMC chairman Mark Liu informed shareholders that the company had begun evaluating the possibility of establishing a manufacturing facility in Germany

According to TSMC CEO CC Wei, the proposed plant in Europe would specialise in producing chips for the automotive industry.

In Germany, comparable initiatives have received subsidies for up to 40% of their funding, as the European Union (EU) aims to increase its portion of worldwide chip production to twice its current level by 2030.

Last month, the bloc passed a $47bn Chips Act to boost domestic production following the disruptions caused by the Covid-19 pandemic and as tensions between the US and China rise.

The sources said that the group is in talks with officials over the size of the subsidy, which will require approval from the European Commission.

According to some of the individuals, the facility, which TSMC may approve as soon as August, will focus on developing 28-nanometre chips.

TSMC produces most of its semiconductors in Taiwan.

However, due to rising concerns over geopolitical tensions and China’s military threats against the island, the company has started to expand its capacity in the US and Japan.