Anecdotal sources continue to insist that TSMC’s European facility will be built in eastern Germany, although management spoke of a more general interest in the region in January. Now, according to people familiar with the matter, negotiations between TSMC and the Saxon authorities for the construction of a plant near Dresden have progressed and talks are now being held on the amount and origin of the subsidies.
Accordingly Reuters, the negotiations between the Saxon authorities and the TSMC leadership are at an advanced stage, the delegation of this German country even visited Taiwan to discuss this issue. The authorities in Germany and Saxony themselves would like to provide TSMC with the necessary funding, but are also dependent on the support of the European Union. At a meeting with EU Commission President Ursula von der Leyen on March 6 in Brussels, Saxon officials discussed the funding policy.
Sources confirmed that the future TSMC facility in Germany, if formed, will focus on mature lithography, which is more in demand by the European automotive industry than advanced manufacturing processes. Such specialization not only serves the interests of the local economy better, but also requires less investment compared to advanced companies. A similar project is already being implemented by TSMC in Japan with the participation of Denso, Sony and the Japanese government. Denso, a Japanese company that supplies automotive components to the Toyota conveyor, is interested in getting 12nm products, and European automakers are likely to make similar technological demands on the future company.