TSMC aims to make Europe the leader in the semiconductor industry
Until now, TSMC primarily focused its investments on America and China. This time, they started investing in Europe for the semiconductor industry.
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Taiwan, facing increasing pressures regarding its sovereignty from Beijing, is strategically deepening its ties with Europe through a significant investment. The island nation's chip giant, TSMC, has made a monumental commitment of €3.5 billion (US$3.83 billion) in Germany. This investment is not only a testament to Taiwan's dedication to Europe but also a gesture of goodwill amid diplomatic trials. Although the European Union has shown hesitation in finalizing a Bilateral Investment Agreement with Taiwan, the Taiwanese Economy Minister, Wang Mei-Hua, accentuates the possibility of further collaboration. She highlights the successful partnership between Taiwan and the US, pointing to recent trade initiatives and measures to counteract double taxation. This initiative by TSMC, which is geared towards manufacturing less advanced chips for the automobile sector, is expected to enhance Taiwan's relations with Europe significantly.
While the establishment of the proposed German plant awaits endorsement from Taiwan, it aligns perfectly with Europe's tech-driven aspirations and is likely to overcome any potential hurdles. This investment not only reinforces Taiwan's commitment to international economic collaborations but also showcases its steadfastness amidst geopolitical strains.
TSMC aims to make Europe the leader in the semiconductor industry
TSMC, in partnership with technology leaders such as Bosch, Infineon, and NXP, is orchestrating a pioneering venture to advance semiconductor manufacturing in Europe. This collaborative effort will establish a state-of-the-art fabrication facility anticipated to produce around 40,000 300mm (12-inch) wafers monthly. Employing TSMC's advanced 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology, the endeavor will elevate Europe's semiconductor infrastructure while creating approximately 2,000 specialized jobs.
The construction is set to start by the latter half of 2024, with operations expected to begin towards the end of 2027. TSMC will hold a dominant 70% ownership in this venture, while Bosch, Infineon, and NXP will each possess 10% shares. This extensive investment of over 10 billion euros will be funded through equity, debt, and considerable support from the European Union and the German government. Operational management will be expertly handled by TSMC, further boosting Europe's tech capabilities and economic resilience.