Taiwan Semiconductor Manufacturing Co. (TSMC) is in talks with partners to spend as much as 10 billion euros ($11 billion) to build a microchip fabrication plant in Saxony, Germany, according to people familiar with the matter.
The planned venture between TSMC, NXP Semiconductors, Robert Bosch and Infineon Technologies will include state subsidies and would have a budget of at least 7 billion euros, with the total investment likely closer to 10 billion euros, the people said, asking not to be identified because the information is private.
A final decision has not been made and the plans could still change, they said.
TSMC is still assessing the possibility of building a plant in Europe, spokeswoman Nina Kao said, without elaborating. Spokespeople for NXP, Bosch, Infineon and Germany's Economy Ministry declined to comment on the project.