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TSMC in talks with suppliers over first European plant

Chipmaker Taiwan Semiconductor Manufacturing Company Ltd is in advanced talks with key suppliers about setting up its first potential European plant in the German city of Dresden.

TSMC is sending a team of senior executives to Germany early next year to discuss the level of government support for the prospective plant as well as the capacity of the local supply chain to meet its needs, according to the report, citing people familiar with the matter.

The Taiwanese firm’s talks with several materials and equipment suppliers are focused on whether they can also make the investments required to support the plant, the report said, adding that if it presses ahead with a Dresden plant, it would focus on 22-nanometre and 28-nanometre chip technologies.

The development comes after the chipmaker flagged last year that it was in the early stages of reviewing a potential expansion into Germany but there appears to have been no substantive progress since then.

TSMC has maintained it had not yet made a decision on a plant in Europe, but that no options were being ruled out.

Under the European Chips Act, the European Commission has earmarked a total of 15 billion euros ($15.90 billion) for public and private semiconductor projects by 2030 and use the money to double Europe’s share of the highly competitive chip market.

Earlier this month, TSMC said it would more than triple its planned investment at its new Arizona plant to $40 billion, among the largest foreign investments in U.S. history.

The company expects its Phoenix factories to create 13,000 high-tech jobs, including 4,500 under TSMC and the rest filled by suppliers. Reuters

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