​TSMC, a Taiwanese company that is the world’s largest manufacturer of processors, may open a factory in Europe, and for this purpose it will send people to negotiate with potential suppliers, writes the Financial Times. The plant could be built in Dresden, Germany, but what subsidies the state will provide is also of great importance.

Europe is in dire need of its own microprocessor production, and the EU is trying to encourage companies to invest through a subsidy plan totaling 43 billion euros.

TSMC also considered opening a plant here, but the war broke out and the plans were shelved. Now the idea is making a comeback, especially since many automotive customers have said it would help if TSMC had manufacturing capabilities in Europe.

In early 2023, a TSMC delegation will travel to Europe to speak with suppliers of equipment and materials to see if they can provide the necessary quantities of materials and equipment for TSMC’s potential manufacturing facility.

A microprocessor factory requires billions of dollars in investment and takes several years to build, as it involves more than 50 types of manufacturing equipment and more than 2,000 types of materials, such as chemicals and industrial gases.

If TSMC approves the investment in Germany, construction of the plant will not begin until 2024.

In March 2022, Intel announced that it would invest €36 billion in Europe and build two microprocessor factories in Magdeburg. But the American company recently asked for increased subsidies, citing increased costs across the board.