From ExtremeTech: If the last few years have taught us anything, it's that global supply chains are vulnerable to disruption. The pandemic-era chip shortage has abated, but demand for silicon is always increasing. Taiwanese chip-making behemoth TSMC is working to open fabs outside of Asia, which could make markets more resilient. After years of flirting, the company has agreed to build a factory in the German city of Dresden.
TSMC is the largest fab operation in the world. It rakes in tens of billions in annual income and has become the largest company in Taiwan. Its German foundry will be the third TSMC operation outside of its traditional markets of Taiwan and China. The first was TSMC's WaferTech subsidiary in Washington state, and in 2020 it announced plans to open a fab in Arizona. That $40 billion facility is still under construction and should begin production by the end of next year.
After the US CHIPS Act's passage, TSMC sought additional subsidies to support the Arizona project. The EU passed a similar piece of legislation known as the European Chips Act, which includes €42 billion to support the development of semiconductor manufacturing in Europe. That's smaller than the US CHIPS Act, which has funding of $76 billion. However, it was still enough to help seal the deal with TSMC, which has been in negotiations with Germany since 2021, reports Reuters.
View: Full Article
