https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-eyes-Germany-as-possible-location-for-first-Europe-chip-plant

**
Created with Sketch.Created with Sketch.
[https][https]
Log In
Try 3 months for $9
[                    ][https][https]
[https][https]

  * News by Location
      + China
      + Japan
      + India
      + South Korea
      + Indonesia
      + Taiwan
      + Thailand
      + U.S.
      + East Asia
          o China
          o Hong Kong
          o Macao
          o Taiwan
          o Mongolia
          o Japan
          o South Korea
          o North Korea
      + Southeast Asia
          o Indonesia
          o Thailand
          o Malaysia
          o Singapore
          o Philippines
          o Vietnam
          o Myanmar
          o Cambodia
          o Laos
          o Brunei
          o East Timor
      + South Asia
          o India
          o Pakistan
          o Afghanistan
          o Bangladesh
          o Sri Lanka
          o Nepal
          o Bhutan
          o Maldives
      + Central Asia
          o Kazakhstan
          o Uzbekistan
          o Turkmenistan
          o Tajikistan
          o Kyrgyzstan
      + Oceania
          o Australia
          o New Zealand
          o Papua New Guinea
          o Pacific Islands
      + Rest of the World
          o Middle East
          o Russia & Caucasus
          o North America
          o Latin America
          o Europe
          o Africa
  * Business
      + Business
      + Automobiles
      + Consumer Industries
      + Energy
      + Finance
      + Health Care & Pharma
      + Industrials
      + Property & Services
      + Startups
      + Telecoms & Media
      + Transportation
  * Markets
  * Tech
      + Tech
      + China tech
      + Startups
      + 5G networks
      + Cryptocurrencies
      + DealStreetAsia
      + 36Kr/KrASIA
  * Politics
      + Politics
      + China
      + Japan
      + India
      + South Korea
      + Indonesia
      + Taiwan
      + Thailand
      + U.S.
      + East Asia
          o China
          o Hong Kong
          o Macao
          o Taiwan
          o Mongolia
          o Japan
          o South Korea
          o North Korea
      + Southeast Asia
          o Indonesia
          o Thailand
          o Malaysia
          o Singapore
          o Philippines
          o Vietnam
          o Myanmar
          o Cambodia
          o Laos
          o Brunei
          o East Timor
      + South Asia
          o India
          o Pakistan
          o Afghanistan
          o Bangladesh
          o Sri Lanka
          o Nepal
          o Bhutan
          o Maldives
      + Central Asia
          o Kazakhstan
          o Uzbekistan
          o Turkmenistan
          o Tajikistan
          o Kyrgyzstan
      + Oceania
          o Australia
          o New Zealand
          o Papua New Guinea
          o Pacific Islands
      + Rest of the World
          o Middle East
          o Russia & Caucasus
          o North America
          o Latin America
          o Europe
          o Africa
  * Economy
      + Economy
      + China
      + Japan
      + India
      + South Korea
      + Indonesia
      + Taiwan
      + Thailand
      + U.S.
      + East Asia
          o China
          o Hong Kong
          o Macao
          o Taiwan
          o Mongolia
          o Japan
          o South Korea
          o North Korea
      + Southeast Asia
          o Indonesia
          o Thailand
          o Malaysia
          o Singapore
          o Philippines
          o Vietnam
          o Myanmar
          o Cambodia
          o Laos
          o Brunei
          o East Timor
      + South Asia
          o India
          o Pakistan
          o Afghanistan
          o Bangladesh
          o Sri Lanka
          o Nepal
          o Bhutan
          o Maldives
      + Central Asia
          o Kazakhstan
          o Uzbekistan
          o Turkmenistan
          o Tajikistan
          o Kyrgyzstan
      + Oceania
          o Australia
          o New Zealand
          o Papua New Guinea
          o Pacific Islands
      + Rest of the World
          o Middle East
          o Russia & Caucasus
          o North America
          o Latin America
          o Europe
          o Africa
  * Features
      + The Big Story
      + Asia Insight
      + Business Spotlight
      + China up close
      + Market Spotlight
      + Datawatch
      + Infographics
  * Opinion
      + Opinion
      + Guest Writers
      + Letter to the editor
      + The Nikkei View
  * Life & Arts
      + Life & Arts
      + Life
      + Arts
      + Tea Leaves
      + Obituaries
  * Asia300

Log In
Try 3 months for $9
Semiconductors

TSMC eyes Germany as possible location for first Europe chip plant

Taiwanese chipmaker looking at ways to lower costs at planned Japan
factory

[https]
TSMC is "seriously" evaluating the feasibility of building a chip
plant in Germany, which would be its first in Europe. (Source photos
by Reuters) 
CHENG TING-FANG and LAULY LI, Nikkei staff writersJuly 26, 2021 12:48
JST | Taiwan
[                    ]CopyCopied
[https][https][https][https][https][https]

HSINCHU, Taiwan -- Taiwan Semiconductor Manufacturing Co., the
world's largest contract chipmaker, said on Monday it is considering
building its first European semiconductor plant in Germany as the
global race to onshore chip production heats up.

Chairman Mark Liu said TSMC is engaging in talks with "multiple
clients" about the feasibility of building a chip wafer plant in the
country.

"We're in the preliminary stage of reviewing whether to go to
Germany," Liu told shareholders at the company's annual general
meeting. "It's still very early, but we are seriously evaluating it,
and [a decision] will depend on our customers' needs."

The comments are the latest sign that the world's most valuable chip
company is shifting away from its decadeslong strategy of
concentrating the majority of its chip production in Taiwan. The
company is already building a $12 billion chip facility in
Arizona and is considering constructing its first-ever wafer plant in
Japan.

For the latter project, Liu said, the company is discussing with
Japanese clients ways to lower operating costs.

"The cost to build and operate a chip plant in Japan is much higher
than doing so in Taiwan. ... We are directly discussing with our
clients ways to narrow the cost gap there," Liu said. "Once we go
through the due diligence process, our goal is to at least be
break-even in costs."

[https] TSMC Chairman Mark Liu, right, answers shareholder questions
at the company's annual meeting on June 26. (Photo by Cheng
Ting-fang) [https]

TSMC's global expansion comes as major economies around the world
call for more semiconductor production to be brought onshore. Chips
are the heart and soul of electronics, from smartphones and data
centers to satellites and military equipment, and governments are
linking their supply directly to national security.

The advanced chip production plant in Arizona will be TSMC's first
chip facility in the U.S. in two decades. Production there is set to
start in early 2024.

Liu said the plant will mainly address the demand for infrastructure-
and national security-related chips, as requested by clients, rather
than for consumer electronics chips.

In Washington's latest supply chain review report, the White House
specifically pointed out that the concentration of advanced chip
production in Taiwan creates a vulnerability for global semiconductor
supply chains.

TSMC supplies chips to almost all the key global chip developers,
from Apple, Qualcomm and Advanced Microelectronics Devices to Intel,
Infineon and Sony. U.S. clients account for 70% of TSMC's revenue,
while those from Japan account for 4.72% and Europe 5.24%.

The company's founder, former Chairman Morris Chang, recently warned
that rushing to bring semiconductor onshore will entail massive costs
without providing self-sufficiency in chips that major economies are
after.

mobile-email-iconStay ahead with our exclusives on Asia

Sign up to our newsletters to get our best stories delivered straight
to your inbox.

[                    ]
[Sign Up]
[                    ]CopyCopied
[https][https][https][https][https][https]

Read Next

  * [https]
    Semiconductors

    TSMC eyes opening Japan chip plant in 2023 to supply Sony

  * [https]
    Semiconductors

    Chip decoupling risks costly failure, TSMC founder warns APEC

  * [https]
    Semiconductors

    Taiwan to invest $300m in grad schools to stem chip brain drain

  * [https]
    Semiconductors

    Intel slams US subsidies for TSMC in Arizona's clash of chip
    titans

  * [https]
    Semiconductors

    Apple and Intel become first to adopt TSMC's latest chip tech

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's
Global Business Bureau.

Discover the all new
Nikkei Asia app

Mobile app
[https][https]

Get Insights on Asia in your inbox

[                    ][https]Sign Up
Connect With Us

[https][https][https][https][https][https]

Discover the all new
Nikkei Asia app

Mobile app
[https][https]

Connect With Us

[https][https][https][https][https][https]

  * About us
  * Contact us
  * Sitemap
  * Help
  * Terms of use
  * Copyright
  * Privacy & cookie policy
  * Advertising

Nikkei Inc. No reproduction without permission.
*

You have {{numberArticlesLeft}} free article
{{numberArticlesLeft-plural}} left this monthThis is your last free
article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99
[https][https][https]
[https]

You have {{numberArticlesLeft}} free article
{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most dynamic market in
the world.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9
[https]

Offer ends July 31st

[https]

Your trial period has expired

You need a subscription to...

  * Read all stories with unlimited access
  * Use our mobile and tablet apps

See all offers and subscribe
[https]

Your full access to Nikkei Asia has expired

You need a subscription to:

  * Read all stories with unlimited access
  * Use our mobile and tablet apps

See all offers
NAR on print phone, device, and tablet media
[https]
[https]
[https]

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of
the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more