TSMC is in negotiations with suppliers to set up its first European factory in Dresden

(Boursier.com) — Taiwanese chipmaker Taiwan Semiconductor Manufacturing (TSMC) is in advanced negotiations with suppliers to set up its first European factory in the German city of Dresden, according to sources reported by the Financial Times. TSMC will send a delegation to Germany in early 2023 “to discuss the level of government support and the ability of the local supply chain to meet the needs,” the newspaper explains.

Asked about this, TSMC says it excludes “no possibility”, while specifying that there is no “concrete project” at this stage at the moment.

The authorities of the Land of Saxony, for their part, said they were ready to welcome companies in the semiconductor sector “if they take the decision”: “Saxony supports these companies to further strengthen Silicon Saxony”, they said. . If the TSMC group decides to materialize this factory project in Dresden, it should focus on 22 and 28 nanometer chip technologies.

Multiple voltages

TSMC, which provides microchips for customers such asApplehas so far been spared the slowdown recently reported by other manufacturers, in particular AMD and Micron Technology.

The semiconductor industry is indeed facing a drop in demand, in particular linked to a decline in the markets for computers and mobile phones due to a reduction by companies and households in their expenditure against a backdrop of galloping inflation and multiple tensions in the ‘supply chain’.

Preventive adjustment

The company, however, recently indicated that it expects costs to rise next year and pointed out that it has preemptively reduced its capital expenditure for 2022 to around $36 billion.

For the fourth quarter, the group expects a 29% increase in its turnover, which should be between 19.9 and 20.7 billion dollars, against 15.74 billion dollars a year earlier.
TSMC said its data center and automotive businesses remain “stable at this time,” and overall its business will be more resilient than the rest of the industry…

Net profit for the third quarter, which ended in September, was T$280.9 billion. Revenue for the quarter climbed 36% to $20.23 billion, while TSMC’s estimates put it between $19.8 and $20.6 billion.