TSMC said to be considering first European semiconductor plant
- Reference: 1671818407
- News link: https://www.theregister.co.uk/2022/12/23/tsmc_reportedly_looking_at_building/
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Its comments come weeks after German business magazine [1]Capital reported a TSMC delegation had already traveled to Saxony to discuss the possibility of building a fab there in October.
The FT this morning claimed an additional delegation would arrive next year to make a "final decision" on whether to spend billions on a plant expected to begin construction by "as early as 2024." [2]The paper quoted (paywall) an executive from a supplier that would provide key materials to the proposed Dresden plant as saying: "We would try to support our customers. We wouldn't let [them] walk alone in the desert." The source told the paper that support from the state would be required.
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In June, [4]TSMC chairman Mark Liu said the giant had no "concrete plans" for fabs in the continent as it had "relatively fewer customers" there.
[5]
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Until very recently, the contract manufacturer produced semiconductors almost exclusively in its home country of Taiwan and neighboring China, where it makes chips for customers including Apple, Nvidia and AMD.
China files complaint with WTO against US chip export controls [7]READ MORE
It also has a facility in Singapore in the form of SSMC, an 8-inch wafer fab which is a joint venture with Dutch company NXP Semiconductors, and a 200mm fab in Washington in the US in the form of its wholly owned US subsidiary, [8]pure-play semiconductor foundry Wafertech .
Earlier this month, the company announced that it will more than triple its planned investment in not one but two [9]new Arizona facilities to $40 billion – a 4nm silicon wafer fab set to go into production in 2024, and a 3nm one slated for 2026. Meanwhile, in [10]Japan , TSMC is building a new factory with Sony that will fabricate chips using the older 22 and 28nm nodes.
Its lead in advanced process nodes provide something of a silicon shield against any Chinese incursions – as its former CTO has pointed out – but it needs to maintain a good relationship with its neighbor, where subsidiary TSMC China is situated, and which is a consumer of at least some of its semis.
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The US position on China trade – in the form of multiple chip sanctions as well as trade bans on allowing US tech anywhere near its products – appears to [12]have put the foundry giant in a bit of a pickle.
CEO CC Wei recently spoke at an event where he claimed "geopolitical confrontation has distorted the entire market."
He told a recent industry event that: "Previously, you make a product and could sell it to the whole world. Now, some products are not allowed to be sold, some countries say that you are not allowed to enter, while some say you can only use certain [local] products."
[13]Micron plans staff decimation as demand dips to Great Recession levels
[14]US sanctions drain Huawei of homegrown advanced chips
[15]TSMC's CEO is not pleased with the growing US-China rift
[16]China files complaint with WTO against US chip export controls
A TSMC plant in the EU would be a boon for Germany, which already has an [17]Intel plant planned in Magdeburg . But the chip giant is said to be delaying construction in order to seek further public subsidies for the project, citing increased costs as one reason for the rethink.
The EU – like the rest of the world – is trying to cut its reliance on importing semiconductors from Asia and earlier this year approved [18]€43 billion ($44.8 billion) in subsidies under the European Chips Act to lure chipmakers to Europe, with a target of doubling the current market share of the EU to about 20 percent of global semiconductor production by 2030. TSMC could also look for additional subsidies from the German state itself. The FT's report claims TSMC's meetings with materials and equipment suppliers are "focused on whether they can also make the investments required to support the plant."
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TSMC told The Register in a statement: "Our global manufacturing expansion strategy is based on customers' needs, business opportunities, operating efficiency and cost economic considerations. While we do not rule out any possibilities, we have no plans at this time." ®
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[1] https://www.capital.de/wirtschaft-politik/chip-riese-tsmc-plant-werk-in-deutschland-32807562.html
[2] https://www.ft.com/content/b006d898-0f46-460b-9abb-3281cdd097de
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y6YzDPQR5moz66ykplY9ygAAAJc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.reuters.com/technology/taiwans-tsmc-says-no-concrete-plans-build-europe-factories-now-2022-06-08/
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y6YzDPQR5moz66ykplY9ygAAAJc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y6YzDPQR5moz66ykplY9ygAAAJc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2022/12/13/china_files_complaint_with_wto/
[8] https://www.theregister.com/2000/11/07/tsmc_to_spend_500m/
[9] https://www.theregister.com/2022/12/06/tsmc_processor_fab_arizona/
[10] https://www.theregister.com/2021/10/14/tsmcs_postpandemic_future/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y6YzDPQR5moz66ykplY9ygAAAJc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2022/12/21/tsmcs_ceo_us_china/
[13] https://www.theregister.com/2022/12/22/micron_job_cuts/
[14] https://www.theregister.com/2022/12/21/us_sanctions_huawei_chips/
[15] https://www.theregister.com/2022/12/21/tsmcs_ceo_us_china/
[16] https://www.theregister.com/2022/12/13/china_files_complaint_with_wto/
[17] https://www.theregister.com/2022/12/19/intel_german_fab_delay/
[18] https://www.theregister.com/2022/11/24/eu_chips_act_funding/
[19] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y6YzDPQR5moz66ykplY9ygAAAJc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[20] https://whitepapers.theregister.com/
They can use the money
Intel was going to get for their recently "delayed" plant. Tell Intel either you build it on schedule, or we will pull your subsidy and offer it to your biggest competitor!
And how much they can threaten you.
The USA govt. can credibly declare it will only buy made in America parts. The Eu commission, meh
CC Wei's comments
While it is true that the pendulum swinging away from free trade towards more protectionism distorts the market, it also a terrible idea to have so much of the world's leading edge semiconductor output happening in one place. One place that happens to also be disputed by a major power and in a very seismically active part of the planet.
So even if other concerns caused it to happen, it is a good thing for the world economy to have TSMC building facilities in the US, Europe and Japan instead of putting more eggs in the Taiwanese basket.
Re: CC Wei's comments
The media gives a very distorted picture of where semiconductors are being made. Articles like this one give the impression that the only fabs that are important are TSMC's in Taiwan. This is misleading. Intel, for example, is a huge semiconductor manufacturer and, for example, their plant in Rio Rancho (Albuquerque), New Mexico uses all the latest lithographic techniques.
I suspect its the old story that corporations would like to grow their business but would rather someone else provided the capital to do this. Semiconductors are a big, profitable, business so it should be possible for it to become even bigger in the normal course of business.
Re: CC Wei's comments
Intel only make their own chips.
While they're apparently considering starting contract manufacturing, it remains to be seen whether that ever actually happens.
If you want to get top-line CPU or GPU chips made and you aren't Intel, TSMC are your only choice.
There's far more options for older nodes though.
Re: CC Wei's comments
Samsung is also an option, though while they talk like they are ahead they seem to be having yield issues with new processes until they are behind what TSMC has, and don't have the capacity TSMC does.
Depends how big a bribe subsidy they're prepared to offer.