The chip giant TSMC is in talks to establish the first factory in Europe

Taiwanese chip maker TSMC is conducting advanced talks with major suppliers regarding the establishment of its first European factory in the city of Dresden in Germany, according to a report in the Financial Times.

According to people familiar with the matter, a delegation of company executives will fly to Germany early next year to discuss the level of government support the potential plant will receive, and to test the ability of the local supply chain to meet its needs. In response to the report, TSMC said: “We are not ruling out any possibility, but there are currently no concrete plans.”

Taiwan and the European Union held high-level talks in June, but less than a week later TSMC announced that there were no concrete plans to build plants in Europe.

According to the report in the Financial Times, the company’s talks with material and equipment suppliers are focused on whether they will be able to make the required investment to support the plant. If the plant does come to fruition, the focus will be on the production of 22nm and 28nm chips. Under the European Chip Law, the European Commission has allocated a total of 15 billion euros ($15.90 billion) to public and private semiconductor projects until 2030. The money is intended to double the European share of the chip market.

At the same time, the secretary general of Japan’s ruling party said that in his opinion TSMC is considering building a second plant in the country. Earlier this month revealed the company Because it intends to triple the planned investment in the new factory in Arizona to 40 billion dollars. It is expected to be one of the largest foreign investments in American history. The company estimates that the American plant will create 13 thousand jobs.