TSMC is considering the construction of its first European chip manufacturing factory, which bodes well for the prospective host country, Germany.

TSMC CEO Wei stated that the business is engaging with European customers and partners to examine the prospect of developing a fabrication site during a conference call on the company’s quarterly earnings.

The site would focus on automotive technology, he added, noting that the scope would be determined by consumer demand and the extent of government backing.

Germany and Japan

Wei’s words come on the heels of recent rumours that the corporation is in advanced negotiations to open a branch in Dresden, focusing on 22- and 28-nanometer chip technology for the automotive sector.

Taiwan has been pressured to broaden production capacity for its highly coveted microchips as anxieties increase over Beijing’s warmongering stance toward Taiwan, which manufactures 90 percent of the world’s most sophisticated chips, according to EU foreign policy leader Josep Borrell.

TSMC has been expanding its production capacity outside of Taiwan with committed investments in Japan and the US. During the call, Wei revealed the business is also “considering” a second factory in Japan.