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Analysis: What Does TSMC's New German Fab Mean for Europe?
TaiwanPlus News
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8/21/2024
Construction has begun on TSMC's new semiconductor factory, or "fab," in Dresden, Germany. TaiwanPlus speaks with Frank Bosenberg from industry group Silicon Saxony about what the new fab might mean for the European chip market.
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00:00
So first of all, what do you see as being the main impacts of this new German chip factory
00:05
once it's built?
00:07
First it's again another major FAB in the same size as the ones by Infineon or Global
00:13
Foundry.
00:14
So it increases the diversity just by the players itself.
00:18
It will help to internationalize the entire region, namely by Taiwanese and further on
00:23
Asian community that we really expect to grow.
00:27
And last but not least, it will also have an impact on the supplier base, which will
00:30
be also more internationalized and more diversified.
00:34
So it's really strengthening the region as a whole, contributing to a very positive
00:39
development in the foreseeable future.
00:42
You might know that Bosch and Infineon are also part of the joint venture that together
00:47
with NXP and of course the major shareholder TSMC forms ESMC, which actually broke ground
00:54
today.
00:55
What about labor?
00:56
There's been reporting of conflicts between TSMC and its Arizona workers.
01:01
Do you know if any extra steps have been taken to address this issue in Germany?
01:06
We have seen several delegations from Taiwan, of course, led by TSMC here on this issue
01:12
already.
01:13
And the new managing director of ESMC, Christian Koitsch, is a former FAB manager of Bosch.
01:19
Just by the setup of the main staff of ESMC alone, this challenge is tackled to some extent.
01:25
And then I also take trust in TSMC that they learn from experiences they made.
01:30
So I won't expect those challenges to occur in the effect as we saw in the US.
01:37
Would you like to see more TSMC factories in Saxony?
01:41
Of course I do.
01:42
Of course I do.
01:43
I mean, it's an economy of scale and it's a typical way of extending existing production
01:50
facilities in a site that you already have.
01:53
We have seen this by the existing players already.
01:57
And of course, I hope that TSMC will also do so.
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