TSMC is in a heated argument with the German government to get more subsidies for its new semiconductor plant in Germany, demanding up to half of the construction cost, according to Bloomberg news.
▲ Photo source: TSMC
According to the report, TSMC will join hands with Bosch (the world’s largest automotive parts company and home appliance manufacturer), Infineon and NXP to build a new factory in Germany with a total investment of up to 10 billion euros, which will be the second largest overseas investment project in TSMC’s history.
The report noted that TSMC wants the German side to inject 5 billion euros in construction funds for the investment project. Bloomberg said TSMC is still working with its three major partners to discuss the exact amount of the subsidy with the German government, but the amount of the subsidy could still change before the German government makes a final decision.
The source pointed out that there are voices within the German government who believe that they should wait for TSMC factories to be completed before establishing the subsidy amount based on the actual situation.
It is learned that TSMC, according to Japan’s Ministry of Economy and Trade on TSMC Kumamoto plant subsidies, also requested that the government should subsidize half of the new factory in Germany. A spokesman for the German Ministry of Economic Affairs also told the media that discussions are underway with TSMC, but neither side has specified more details.
