TSMC says it’s too early to tell if Germany factories  will be build

Get a free Techzine subscription!

Taiwan Semiconductor Manufacturing Co told us that it’s too early to say whether plans to build factories in Germany will go on. The company said that talks were in the early stages, as the EU seeks to alleviate the chip supply shortage and reduce imports.

The European Commission is said to be in talks with global chip plants, including TSMC and Intel, to boost semiconductor production within the bloc, to shield its 27 economies from supply chain problems.

Taiwan and TSMC have been central in efforts to deal with the chip shortage, which has forced automakers to experience production troubles.

Supply chain shocks

Smartphones, laptops, and other electrical appliances reliant on chips have not been spared either.

TSMC chairman, Mark Liu, told an annual shareholder meeting that the company is doing reviews on Germany seriously but is still grappling with the early stages, to answer questions about chip fabrication plants.

He added that the company is communicating with its major clients in Germany to see whether the step is most important and effective for them.

However, it is still “too early to say.”

Currying favor

In July, the company signalled that it plans to build new factories in Japan and the United States, amid concerns that chipmaking was concentrated in Taiwan, which makes most of the world’s advanced chips and is close to China, a leading political rival.

Speaking about the company’s $12-billion factory in Arizona, US, Liu said it will support client demand in national security and infrastructure.

Liu confirmed that TSMC has client backing and plans to invest $100 billion over the next three years to increase capacity, reassuring shareholders that “we will move very cautiously.”