Chip manufacturer TSMC announced plans to establish a new fabrication plant, or ‘fab’ in Dresden, Germany on Tuesday. They will invest more than US$3.48 billion in a joint venture with Bosch, Infineon, and NXP to establish the 12-inch wafer fab.
TSMC also says they will introduce a 2nm process at the Kaohsiung plant to respond to the strong market demand. TSMC plans to use their Hsinchu and Kaohsiung fabs as production bases for the 2nm chip in 2025.
Economic affairs minister Wang Mei-hua (王美花) said on Wednesday that in addition to meeting customer needs, cooperation will also bring new opportunities for TSMC. She says the Kaohsiung plant was originally slated to produce 28nm chips, but following plans to establish fabs in both Japan and Germany, the focus for Kaohsiung was redirected to more advanced process technologies.
Establishing new fabs overseas can respond to customer needs and improve the resilience of the supply chain. However, recent TSMC announcements confirm statements from TSMC Chief Executive C.C. Wei (魏哲家) that the most advanced manufacturing process and research and development will stay in Taiwan.