TSMC pledges to commence chip manufacturing plant construction in Germany in the fourth quarter.

TSMC, the world’s leading contract chipmaker, announced plans to commence building its first semiconductor component manufacturing plant in Europe by Q4, 2024. The $11 billion factory is to be located in Dresden, Germany, with chip production starting in 2027.

According to a Reuters report, the new facility will be termed ‘European Semiconductor Manufacturing Co’ (ESMC). Paul de Bot, head of TSMC’s European operations, assured the timely commencement of the planned works. Local tech companies – Infineon, NXP and Robert Bosch – are set to contribute 10% each to the overall investment and will receive proportional shares in the future joint venture.

The Senior Vice President of TSMC overseeing international relations, Kevin Zhang, professed his confidence in securing government subsidies for construction, courtesy of the corresponding EU law bolstering chip production. Despite no official approval yet, the plant enjoys strong backing from German authorities and the EU, signifying the expected allocation of necessary privileges.

The ESMC plant is slated to produce chips using 22-nm technology, first introduced by TSMC in the mid-2010s. “The factory will implement cutting-edge technology at the heart of the automotive industry,” highlighted Zhang referring to microcontroller units utilized in cars to supervise brakes, sensors, windows, windshield wipers and more.

Zhang hinted at TSMC’s potential expansion in Europe, which might encompass building additional factories capable of producing advanced chips with more sophisticated processes. He indicated similarities to how the company evolved in Japan, where they initiated the construction of their first factory in 2021. This year, plans for a second state-of-the-art facility were announced, with the third one not ruled out, considering the Japanese authorities’ persistence.

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