TSMC officials have so far been reluctant to comment on rumors of plans to set up a business in Germany, preferring to mention Europe on a larger scale. Kevin Zhang, the company’s senior vice president, said this week that the board will make a final decision in August and the Dresden factory will initially specialize in 28nm chips.
According to him quoted Bloomberg, these technological norms are in demand among TSMC’s local customers who focus on the supply of automotive components, and in the future the German company may switch to using more advanced technical processes. The fate of this project is expected to be finally decided by the TSMC Board of Directors in August of this year.
According to unofficial sources, TSMC management is negotiating with European authorities to award grants covering up to 50% of the cost of setting up a business in Germany, with the usual threshold for such projects not exceeding 40%. TSMC partners, including Bosch, NXP Semiconductors and Infineon Technologies, can also help finance the build-up of the company. According to preliminary information, setting up a company in Germany requires investments of up to 10 billion euros. According to this, half of this amount will be made available by the authorities of the European Union and Germany if the negotiations are successful.