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A Fab in Germany for TSMC?

A Fab in Germany for TSMC?

TSMC would have opened the reflection on the feasibility of creating a new factory in Germany. At this moment TSMC is still discussing the project with its customers. However, the subject is serious enough that the president of the company, Mark Liu, opened up to shareholders at the annual general meeting on July 26.

 

TSMC Mark Liu

Mark Liu, CEO of TSMC

 

TSMC is undoubtedly making the realization that it is now very dependent on its American friends. Indeed, the company makes nearly 70% of its revenue from orders placed by its American customers (we obviously think of Apple, AMD, etc.). On this subject precisely, the Taiwanese is currently starting the construction of a factory in Arizona dedicated to 5nm. This factory is only the first step in a vast project to better meet the demand of its US customers in a context of intense trade tensions.

European automotive industry targeted by TSMC

It is difficult not to put this “German project” into perspective with the recent visits of Intel’s CEO to Europe and his desire to set up a Fab there as well. The European automotive industry, and in particular the German one, is strongly affected by the shortage of chips which are used massively the more high-end the vehicle. We should not be fooled by Germany’s role in these statements. The country is lobbying intensively to host a future semiconductor plant, which should receive a substantial subsidy from the European Commission.

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Edited by Calliers

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