TSMC is all set to introduce new plants in Germany and Japan
The tension between the Chinese and Taiwanese economies is growing. These issues have impacted exports and shipments. Due to these reasons, the Taiwanese tech giant, TSMC, is looking for ways to broaden its horizons concerning production. For this, TSMC is constructing a facility in Arizona, USA. this facility will manufacture 4nm and 5nm chips for companies like NVIDIA, Apple, and others.
The Arizona plant will be fully functional as of 2026. It will begin with the production of 3nm chips. But given the current situation, a gap of three years indicates that TSMC won’t be working on the production of the most recent A-series and M-series chips. In addition to this, a few recent reports are pointing towards another plant of TSMC. This time particularly in Germany. As per reports, the latest facility in Dresden, Germany is going to be the first-ever European plant of TSMC. As of now, the company has not shared any news on whether this plant will manufacture chips for Apple or not.
Keep in mind that TSMC has not ruled out any possible announcements and declarations yet. It is believed to be the sole supplier of Apple for the A-series and M-series chips. Besides this, TSMC is also looking forward to setting up a plant in Japan by collaborating with Sony. Whereas the project for the Germany plant is in talks with the authorities. The company will possibly send a team of senior officials for a visit to Germany next year.
According to a report by Financial Times, next year’s trip to Germany will be the second official trip by TSMC. This visit is going to be decisive as TSMC will decide about the investment in the European plant. It will possibly begin construction by 2024. Furthermore, the German plant will focus on developing chips for the automotive industry. these chips will particularly be based on 22nm and 24nm processes.
However, this delay by TSMC might previously create a beneficial scenario for Samsung. But this is not the actual case. Since the two companies have long-term contracts. TSMC will be supplying Apple with future 3nm M3 and A17 Bionic chips.
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