- TSMC commits €3.5 billion to plant
- Germany to contribute up to €5 billion / EU approved
- Operational in 2027
Reuters »
The plant, which will be TSMC’s third outside of traditional manufacturing bases Taiwan and China, is central to Berlin’s ambition to foster the domestic semiconductor industry its car industry will need to remain globally competitive.
Reuters »
Taiwan chip maker TSMC’s €3.5 billion (US$3.83 billion) investment in Germany will drive deeper engagement between the island and Europe, Taiwan’s economy minister said on Wednesday, pitching the political benefits of the deal.
Bloomberg »
Dresden is a continuation down that path of working with clients to jointly own facilities, largely to supply the growing demand for components used in automobiles. TSMC will invest up to €3.5 billion ($3.8 billion) for a 70% share of newly formed European Semiconductor Manufacturing Co. Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors NV each take 10%, and total capex is expected to be around $11 billion, with the money coming from equity, debt and German and EU funding.
Since its founding by Morris Chang more than three decades ago, TSMC eschewed equity partnerships in favor of maintaining full control over its operations, and thus its destiny. But the global winds have changed, and its new leaders, Chairman Mark Liu and Chief Executive Officer CC Wei, have had little choice but to adapt. TSMC’s balance sheet is solid, its cash flow is stable, and its credit rating is high. It doesn’t need clients nor governments to hand it money in order to pay for these new facilities.
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