According to a Financial Times report, Taiwan Semiconductor Manufacturing Company is in advanced negotiations with major suppliers about establishing its first European facility in Dresden, Germany.

According to the report, TSMC is sending a team of top executives to Germany in early 2023 to evaluate the extent of government backing for the planned facility and the capacity of the local supply chain to satisfy its needs.

In a statement responding to the report, TSMC said, “We do not rule out any possibility, but there is no concrete plan at this time,” but did not elaborate.

TSMC is yet to commit to anything

Despite Taiwan and the European Union conducting high-level trade negotiations in June, TSMC announced less than a week later that it has no concrete European manufacturing plans.

In 2021, TSMC, which stands out as the world’s largest contract chipmaker and Asia’s most valuable listed business, indicated that it was in the early phases of considering an extension into EU member Germany.

The Taiwanese firm’s discussions with multiple material and equipment providers are centered on determining whether they will also make the investments needed to help the factory, according to the FT, adding that the Dresden plant, should it go ahead as planned, will focus on 22-nanometer and 28-nanometer chip technology.

The race to build out chip manufacturing

The European Commission has set aside a total of $15.9 billion (15 billion euros) for public and commercial semiconductor initiatives by 2030 to double Europe’s share of the hypercompetitive chip industry.

TSMC said earlier this month that it would more than triple its projected investment in its new Arizona factory to $40 billion, making it one of the biggest foreign investments in US history.

The business anticipates its Phoenix plants will produce 13,000 high-tech jobs, 4,500 of which will be employed by TSMC and the remainder by partners.