Taiwan chipmaker TSMC's talks with the German state of Saxony about building a new factory are at an advanced stage and are now focused on government subsidies to support the investment, two people familiar with the matter said.
Given the higher costs associated with building in Germany, including for labour, TSMC has been discussing subsidies it could get in return for building the factory, said the person, who declined to be identified because the talks are private.In January, TSMC CEO C.C. Wei said the company was talking to customers and partners about building an automotive-focused plant in Europe based on customer demand and the level of government support. TSMC declined to comment further.
The German and Saxony governments are willing to give subsidies but they also need further EU funds, the second person familiar with the situation said.The Saxony government said decisions about building plants would be taken by companies, but added it was always in talks with leading firms about investing further in the region.
Saxony officials discussed the EU Chips Act with EU Commission President Ursula von der Leyen on March 6 in Brussels, according to the state government. Germany's economy ministry said it could not comment on individual company plans, but noted the federal government was willing to support and promote semiconductor production projects under the European Chips Act.TSMC is already expanding internationally. It has committed $40 billion to
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