TSMC in EU

Capital structure. The setup seems simple. Total cost is 10 billion euros. German gov shall give 5 billion euros in subsidies. TSMC will put down 3.5 billion euros, for a 70% stake. Bosch, Infineon Technologies and NXP Semiconductors will each put down 500 million for a 10% stake – 30% total.

Timing. TSMC’s fab in Japan announced in Oct 2021, started construction in Apr 2022 and is finishing in Q1 2024 (2 years of construction), and began mass production in H2 2024. The Kumamoto plant will start with 28-nm and 22-nm chips.

TSMC’s German fab hasn’t started yet. Should it began construction in H1 2024, it should finish in 2026 and start mass production in 2027. which sounds a bit far away. And this fab is for mature node (28/22nm planar CMOS and 16nm/12nm FinFET nodes).

Cost. Back in 2016, TSMC’s Nanjing plant (Fab 16) is said to cost $3bn for 20,000 12-inch wafers per month, plus the construction of a design service center. The German plant is designed to have 40,000 wafers a month, but still, the cost has inflated to almost 2x after 8 years, or ~8% annually.