TSMC Plans To Build New Factory In Germany Only For 28nm Chip Production

JAKARTA - Taiwan Semiconductor Manufacturing Company (TSMC) will again spread its wings to German territory to open a new chip factory.

According to reports, the metal casting giant is currently in talks with partners and the German government about the deal.

TSMC plans to disburse funds worth US$11 billion or equivalent to Rp161.7 trillion. The company will also cooperate with NXP Semiconductors, Robert Bosch, and Infineon Technologies to provide a wide base for its efforts.

It is known, the company has been eyeing major manufacturing hubs in Europe for years now. In 2021, TSMC Chairman Mark Liu said the company was also deciding facilities in Germany and, in March, reportedly already in further talks with local leaders on funding.

Several sources said to Bloomberg, quoted Thursday, May 4, the facility will focus on a more mature 28 nanometer (nm) component.

A report shared by AnandTech recently, said TSMC strongly encourages its customers to still use the oldest node in order to integrate their mature design to 28nm, which will be a new basic level semiconductor component fab option.

While PC fans may disagree on 28nm, its output will be welcomed by manufacturers who suffered bad luck during a chip shortage in the early 2020s.

TSMC will not be the only casting operator to set up a factory in Germany. Intel has committed to building a mega fab worth 20 billion euros in Magdeburg and has earned a subsidy of 6.8 billion euros from the German government to make it happen, as reported by The Register.