TSMC continues to consider future expansion plans and is evaluating the construction of the first factory in Europe.
Cause and effect is something that happened with Apple especially this year after what happened with the pandemic. The crisis in China led to the search for a new headquarters, TSMC what is your main chip maker plans the first European factory. Bloomberg previously reported on this event and now the Financial Times reaffirms it.
TSMC considers Europe to have a factory in Germany
The city of Dresden would be the chosen location for the Taiwanese manufacturer although chips for Apple are not made at first. It is also not excluded in the future given the crises that Apple is currently going through. The technical advantage that allowed it to consolidate ahead of Apple
TSMC has a problem that could continue to cause you problems in the long run an Apple. China could complicate and interfere in exports with the likelihood of blocking and even invading operations.
Apple would be one of TSMC’s customers who will have to pay a price increase in the costs of its components.
With future events and anticipating what may happen, TSMC considered diversifying its production and reducing risks. Two factories in Arizona are envisaged and another in Japan, the latter in partnership with Sony. Thanks to the Financial Times, we know that TSMC is in talks with suppliers to establish itself in Germany. Senior company executives will have a visit from 2023
What does the main decision depend on?
As a context, Arizona factories will focus on manufacturing old Apple chips for Cupertino products. In the near and distant future, the fabrication of 4 and 3 nanometer chips is planned. Be careful, these chips will not be last generation since the Taiwan factory will have an advantage in this respect and what the American factory manufactures will be intended for older Apple devices such as the iPhone SE and the iPhone 11 or 12.
Because the future factory in Germany will have the power to supply chips to the automotive industry. The processes are larger and more complex, we are talking about 22 and 28 nanometer chips. Everything could change, apart from the decision, if government grants are obtained.
TSMC engineer in chip manufacturing process
TSMC overseas factories are subsidized by the local governments where they are located. Installation costs are often very high. In the United States alone, the current law provides 45 billion for chipmakers who build factories in their country. The European Union is about to pass the same law.
Plans could be projected in the best way but also they have to think about their higher manpower. Engineers with the experience to oversee the construction and operation of new factories are limited. Will they be able to control all processes simultaneously in the US, Japan and Germany?
