Taiwan Semiconductor Manufacturing Co. is in discussions with partners about spending up to 10 billion euros ($11.04 billion) to erect a chip manufacturing facility in Germany.
Including state subsidies, the budget for the partnership between TSMC, NXP Semiconductors NV, Robert Bosch GmbH, and Infineon Technologies AG will be at least 7 billion euros, but sources predict that it will likely be closer to 10 billion euros.
The prospect of constructing a fab in Europe is still being considered by TSMC.
According to two persons with knowledge of the situation, TSMC has already had extensive discussions with Saxony, the area where the factory would be built, with an emphasis on government incentives to promote the investment.
A worldwide semiconductor contract manufacturing and design business based in Taiwan is called Taiwan Semiconductor Manufacturing business Limited (TSMC; sometimes known as Taiwan Semiconductor). It is one of Taiwan's largest enterprises, the largest dedicated independent ("pure-play") semiconductor foundry, and the most valuable semiconductor company in the world. Its major operations and corporate headquarters are located in Hsinchu Science Park. Foreign investors own the majority of the company.
Morris Chang established TSMC, the first specialised semiconductor foundry in the world, in Taiwan in 1987. TSMC has long held the top position in its industry. After 31 years at the head of TSMC, Chang departed in 2018, and Mark Liu took over as chairman and C. C. Wei as CEO. It was the first Taiwanese firm to launch on the New York Stock Exchange in 1997 after having been listed on the Taiwan Stock Exchange since 1993. Since 1994, TSMC's revenue has grown at a compound annual growth rate (CAGR) of 17.4% and earnings have grown at a CAGR of 16.1%.