Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 23 (Xinhua)-- according to the Nikkei News, TSMC is in talks with suppliers about its first European plant, which they plan to build in Dresden, Germany, so that it can take advantage of the fast-growing demand of car companies in the region.

The Chinese company will send a senior team to Germany early next year to discuss government support for future factories and the ability of the local supply chain to meet its needs, according to people familiar with the matter.

The visit will be the second by a TSMC executive in Europe in six months and a decision is expected soon, according to people familiar with the matter. If it goes through, construction of the multibillion-dollar plant could begin as early as 2024.

It is worth mentioning that Europe, the United States and Japan are all strengthening their local chip manufacturing capacity, and Brussels approved a subsidy of 43 billion euros earlier this year to attract major chipmakers to Europe. Intel, for example, has announced that it will build a new chip factory in Magdeburg, Germany.

TSMC's negotiations with several suppliers of materials and equipment focused on whether they could also make the investment needed to support the plant, according to people familiar with the matter.

Chip manufacturing is a complex process that relies on at least 50 state-of-the-art equipment, such as lithography and etching machines, as well as more than 2000 materials, including chemicals and industrial gases. "We will try our best to support our customers," said an executive at a supplier. We won't let [them] walk alone in the desert.

CTOnews.com has reported that Intel has abandoned its goal of building a new chip plant in the eastern German city of Magdeburg in the first half of 2023, saying the semiconductor giant wants more financial subsidies.

Intel remains committed to investing in Europe, but the Magdeburg plant must be more competitive, according to people familiar with the matter. If TSMC advances the construction of the Dresden plant, it will focus on 22nm and 28nm technology, similar to those opened by TSMC and Sony in Japan.

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