TSMC, Bosch, Infineon, NXP to jointly build semiconductor fab in Europe (pr.tsmc.com)

Article summary

TSMC, Bosch, Infineon, and NXP are jointly building a semiconductor fab in Europe, with the European government providing a 5 billion euro subsidy. The fab will use 22nm node technology, which may not be the most suitable for the German industry's needs. The partnership may provide insurance for Germany against potential future disruptions in the semiconductor supply chain. The deal's terms and implications for the global semiconductor market are being discussed.

Main themes

• semiconductor industry
• global trade
• geopolitics
• technological advancement
• export restrictions
• national security

What commenters say

• The partnership between TSMC and European companies may be a result of coercion or strategic maneuvering.
• The European government's subsidy is a key factor in the deal, giving them leverage over TSMC.
• China's growing semiconductor industry poses a threat to Taiwan's and the US's dominance in the market.
• The deal may not significantly reduce reliance on Taiwan's cutting-edge fabs, as the technology used is relatively old.
• The US may still exert significant influence over European companies, such as ASML, through export restrictions and trade agreements.
• China's ability to catch up with the US and Taiwan in semiconductor technology is uncertain and depends on various factors, including demography and investment.
• The deal may be part of a larger geopolitical strategy, with Taiwan seeking to build alliances and reduce its reliance on the US.
• The use of export restrictions and trade agreements as a means of control is a contentious issue, with some arguing it is necessary for national security and others seeing it as a form of coercion.