Taiwan Semiconductor Manufacturing Co. (TSMC) is currently in talks with multiple partners for the construction of a microchip fabrication plant (fab) in Saxony, Germany. The current partners involved in the talks include TSMC, NXP semiconductors, Robert Bosch and Infineon, with EC officials also present. The joint venture is said to require a total investment of around USD11 billion, of which a large percentage will possibly originate from EU subsidies under the 2023 Chip Act. Enacted in April, the USD47 billion EU Chip Act aims to help the EU achieve its target of doubling its semiconductor production market share to 20% by 2030. By onshoring chip production, the EU plans to bounce back from supply chain complications as a result of Covid-19, as well as protect against geopolitical risks associated with China, where the vast majority of chip production is located.
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