Media outlets in Taiwan report that TSMC is prepared for the approval of the European chip law that will grant chip manufacturers subsidies of 43 billion euros
, Taiwan’s TSMC plans to build a semiconductor factory in Germany, and the plan is set to move forward when the European chip law receives its final approval on April 18. With the entry into force of the law, chip manufacturers will be granted subsidies of 43 billion euros to strengthen the competitiveness of the continent.
Taiwanese media reported that a number of TSMC partner companies were recently asked to submit initial bids for equipment, consumables and factory facilities to be shipped to Germany. They emphasized that TSMC requested similar documents from suppliers before announcing the project to build a plant in Arizona in the United States. They analyzed that TSMC has put its semiconductor factory construction project in Dresden, Germany into a mature phase.
TSMC previously announced that it would build a semiconductor factory in Germany and conducted detailed negotiations. The industry believes that Dresden is a strong candidate and that the announcement will take place by April 18 (next week)
The main objective of the EU Semiconductor Law is to pay 43 billion euros to strengthen the competitiveness of European semiconductors. Originally, the law was designed to subsidize only technology-intensive semiconductor plants, but the EU member states extended the financial support to all semiconductor-related industries, including the manufacturing, research and development (R&D) and design sectors even in old technologies.
Following the American chip law, South Korea, Taiwan and Japan are also passing bills to attract semiconductor manufacturing facilities to their countries one after the other. Samsung in response plans to build the world’s largest semiconductor cluster in Yongin, Korea by 2042. But TSMC’s investment in manufacturing facilities is more aggressive, which is expected to increase the burden on Samsung, which has set itself a goal of becoming the world’s No. 1 chip maker by 2030.