It is reported that TSMC is asking for a subsidy of 5 billion euros in the new German plant, accounting for 50% of the total investment.

CTOnews.com, May 26, according to Bloomberg, TSMC is engaged in a heated debate with the German government to fight for more subsidies for its new semiconductor plant in Germany, which is required to reach half the construction cost.

▲ drawing source: TSMC

According to the report, TSMC will set up a joint venture with Bosch (the world's largest auto parts company and home appliance manufacturer), Infineon and NXP to build a new factory in Germany, with a total investment of 10 billion euros (CTOnews.com Note: currently about 75.9 billion yuan), which will also become the second largest overseas investment project in TSMC history.

According to the report, TSMC hopes that Germany will inject 5 billion euros (currently about 37.95 billion yuan) into this investment project. TSMC is still working with its three major partners to discuss the specific amount of subsidies with the German government, but it is still likely to change before the German government makes a final decision, Bloomberg said.

The source pointed out that there are voices within the German government that we should wait for the completion of the TSMC plant before determining the amount of subsidy according to the actual situation.

CTOnews.com access to information learned that TSMC in accordance with the Japanese Ministry of economy, Trade and Industry subsidy to Taiwan SMC Kumamoto factory, also requires that the new factory in Germany the government should subsidize half. A spokesman for the German Ministry of Economic Affairs also revealed to the media that discussions were under way with TSMC, but neither side gave more details.