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TSMC’s German chip plant talks about government subsidies – sources | – #TSMCs #German #chip #plant #talks #government #subsidies #sources

TAIPEI, March 16 (Reuters) – Taiwanese chipmaker TSMC ( 2330.TW ) is at an advanced stage in talks with the German state of Saxony to build a new factory and is now eyeing government subsidies to support the investment. said the matter.

TSMC, the world’s largest contract chipmaker and Asia’s most valuable listed company, will be the first in 2021 Europe said it is in the early stages of considering a potential expansion to EU member Germany, which will have the plant.

Europe Union last year to ease government funding rules for semiconductor plants, which previously faced state aid bans Europe It introduced the Chips Act as the bloc tries to guarantee supplies after chip shortages and supply chain bottlenecks during the COVID-19 pandemic.

A person briefed on the matter said talks between TSMC and Saxony are “serious and advanced” and that delegations from the East German state, whose capital is Dresden, have come to Taiwan for talks with TSMC.

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Construction in Germany, incl labour Given the higher costs associated with the fee, TSMC is discussing subsidies it could receive in exchange for building the factory, said the person, who spoke on condition of anonymity because the talks are private.

TSMC said in December that it had “no concrete plans” to build a chip factory in Germany.

January in Europe based on the level of customer demand and government support with the company’s customers and partners, TSMC CEO CC Wei said car aimed at the industry factory he said he was talking about building. TSMC declined to comment further.

The EU sees Taiwan as one of the “like-minded” partners it wants to work with to build new factories to boost chip supplies.

The German and Saxon governments are willing to provide subsidies, but they also need additional EU funds, said a second person familiar with the situation.

“Without subsidies, no one will come,” the person said.

The Saxony government said decisions on building the plants would be made by the companies, but added that it was always in talks with leading firms to invest more in the region.

Saxony officials discussed the EU Chips Act with EU Commission President Ursula von der Leyen in Brussels on March 6.

Germany’s Economy Ministry said it could not comment on individual company plans, but noted that the federal government is ready to support and promote semiconductor manufacturing projects under the European Chip Act.

The European Commission declined to comment.

TSMC is already expanding internationally. USA40 to build a chip factory in Arizona billion dollars is also building a chip factory in Japan and is considering a second one there.

USA The Arizona factory, one of the largest foreign investments in its history, will start production in 2024 using advanced 5 nanometer technology. Construction USA53 for the chips industry of billion dollars subsidy and tax It was announced after the adoption of the law that issued the loan.

The first party, TSMC’s German factory, will likely produce less advanced chips if it goes ahead, especially car used in industry.

“These are the types of chips that German industry needs,” the person said.

By Ben Blanchard report; Additional by Riham Alkousaa in Berlin and Yun Foo Chee in Brussels report; Edited by Jamie Freed

Our standards: Thomson Reuters Trust Principles.

2023-03-16 03:13:10
Source – reuters

Translation“24 HOURS”



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