TSMC’s Europe Plan Gives It a New Global Dimension

It looks increasingly likely that Taiwan Semiconductor Manufacturing Co. will proceed with a factory in Europe — after entering the US — as a way to meet both industry demand and political pressure. Adding a third continent would make the world’s biggest chipmaker a truly global enterprise, one that takes its expansion plans in a new direction.

A site near Dresden in Germany’s northeast is the leading contender as TSMC negotiates with clients, car manufacturers and governments over incentives and costs. A possible venture with NXP Semiconductors NV, Robert Bosch GmbH and Infineon Technologies AG includes state subsidies and would have a budget of at least €7 billion ($7.7 billion), though presumed to be closer to €11 billion, Bloomberg News reported last week. The Hsinchu-based company said it is still assessing the possibility of building on the continent.