Building a factory in Germany is an important and challenging plan for TSMC. However, the program may be at risk of running aground due to the problem of subsidies not being paid on time. Originally, TSMC planned to cooperate with Bosch, Infineon and NXP to build a new semiconductor manufacturing company (ESMC) in Dresden, Germany, and provide top-notch semiconductor manufacturing services. The project is scheduled to start construction in the second half of 2024 and start production in 2027, with a total investment of more than 10 billion euros. However, although Germany** had previously pledged a subsidy of 5 billion euros, the delay of the specific subsidy package was one of the reasons why the construction plan was put on hold. Faced with the problem of subsidy extension, TSMC gave a deadline, and if Germany fails to solve the subsidy problem within 9 months, TSMC will abandon the factory construction plan.
Germany's plans to build factories have hit a roadblock on the issue of subsidies. According to the report, Germany's decision to transfer the planned subsidy to "Climate and Transition" is considered unconstitutional and creates uncertainty. This ** is TSMC's subsidy**, and there is great uncertainty about whether the subsidy can be paid as scheduled. Faced with the problem that the subsidy cannot be paid in time, TSMC is considering abandoning the German factory construction plan and discussing with Germany** to renegotiate the conditions for Dresden's investment in the wafer factory to reduce the subsidy amount. However, after the bumpy experience of building a factory in the United States, TSMC is unlikely to compromise again and give a nine-month deadline. If Germany fails to resolve the subsidy issue, TSMC will have to abandon plans to build a factory in Germany.
The German plant plan faces multiple problems and challenges. First of all, Germany has a relative shortage of semiconductor talent** and may need to deploy human resources from other countries, which adds additional costs. Secondly, the cost of building a factory and labor costs are high, and it is difficult to maximize profits if the future foundry ** cannot meet expectations. For TSMC, in addition to discussing subsidies with Germany, it is also necessary to consider the layout of fully independent production capacity on a global scale to re-establish the Chinese mainland market. This is an important goal for TSMC, but at the same time, it faces difficulties and challenges.
TSMC is one of the world's top chip foundries, and it continues to receive orders regardless of whether the production capacity is located in Taiwan Province or not. However, after losing the Chinese mainland market, TSMC is facing a certain dilemma. Chinese mainland is one of the world's largest semiconductor markets, and it is crucial for TSMC to resume supply to the Chinese mainland market. Therefore, TSMC needs to find solutions to lay out the global market to achieve independent capacity layout and re-evaluate the Chinese mainland market. This will be the fundamental way out of the predicament.
Germany's plans to build factories are affected by subsidy issues and may be at risk of running aground. TSMC has given a nine-month deadline and will abandon the plant plan if Germany fails to resolve the subsidy issue. The German factory construction plan faces multiple problems and challenges, including a shortage of semiconductor talent** and high factory construction costs. For TSMC, global layout and re-opening the Chinese mainland market are important strategic goals. Solving the subsidy problem and laying out independent production capacity is of key significance to TSMC.
For TSMC, the stranding of the German factory construction plan is undoubtedly a blow. However, as the global semiconductor market becomes increasingly competitive, TSMC has had to find other ways to stay competitive. Laying out the global market and realizing independent production capacity layout will become an important strategic direction for TSMC in the future. At the same time, re-e** the Chinese mainland market is also an issue that TSMC must consider. The Chinese mainland market has huge potential, which is undoubtedly an important profit for TSMC**. Therefore, TSMC needs to increase its supply in the Chinese mainland market and strive to restore cooperative relations with Chinese customers.
In this era of global competition, enterprises need to constantly adjust and optimize their strategic layout to cope with the unpredictable market environment. For TSMC, the shelving of the German factory construction plan is only a temporary setback, but it does not mean a failure. Only through unremitting efforts to find a suitable development path for oneself can we be invincible in the fierce competition. It is believed that TSMC will be able to overcome the current difficulties and achieve greater success.