TSMC is exploring the possibility of building a chip fab

TSMC is exploring the possibility of building a chip fab in Europe and a second facility in Japan

In the last few weeks of last year, lively rumors circulated about the interest of the Taiwanese TSMC in setting up a company for custom manufacturing of chips in Europe, in Germany. Speaking to analysts on today’s quarterly conference call, TSMC CEO CC Wei stated that the company is indeed evaluating this opportunity and will serve local automakers.

    Image source: TSMC

Image source: TSMC

“In Europe, we are working with customers and partners to explore the possibility of building a specialized facility focused on technologies used in the automotive segment, subject to customer demand and government support,”explained Head of TSMC. He also confirmed that the company is considering building a second plant in Japan, in addition to the one already under construction in the west of the country, which will be operated with the direct support and benefit of Sony and Denso.

TSMC management believes that the condition for the advisability of building a second plant in Japan is the presence of sufficient demand from customers and adequate support from the authorities. Recall that the Japanese government is ready to pay almost half the cost of TSMC and its partners to build the first enterprise in this country.

Along the way, TSMC management shared its forecasts for the current year. The entire semiconductor industry, excluding the memory chip segment, will reduce sales by 4% in 2023, according to TSMC. Our own sales will also decrease in the first half of the year, but increase in the second half of the year and slightly increase sales for the year as a whole. The most difficult moment in terms of demand for the company should happen in the current half of the year. The reduction in capital expenditures to $32 billion this year will not impact research and development spending, which is expected to increase 20% year-over-year.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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