Taiwan Semiconductor Manufacturing Corporation’s (NYSE:TSM) semiconductor factory in the German city of Dresden has won praise from Taiwanese and German officials. Construction of the 12-inch factory, worth 10 billion euros ($11 billion), broke ground in August.
The Taipei Times quoted Deputy Foreign Minister François Wu at a German National Day event in Taipei on Friday that Taiwan has pledged full support to Europe in developing a domestic semiconductor base. Reported.
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Disruptions to the semiconductor supply chain when the coronavirus pandemic began in China led countries to strengthen their positions in semiconductor technology rather than relying entirely on Asian countries.
The Taiwanese chipmaker collaborated with Infineon Technologies AG (OTC:IFNNF) (OTC:IFNNY), NXP Semiconductors NV (NASDAQ:NXPI), and Robert Bosch GmbH to build the factory.
Previous reports indicated that Taiwan Semiconductor plans to launch 28nm or 22nm planar CMOS (complementary metal oxide semiconductor) technology and 16nm or 12nm FinFET (fin field effect transistor) process.
Wu told the Taipei Times that the total trade between Taiwan and Germany in 2023 exceeded $22 billion.
Cooperation between Germany and Taiwan extends beyond semiconductors, including providing training to students at the Dresden University of Technology.
Taiwan Semiconductor’s stock has risen 104% in the past 12 months, driven by the artificial intelligence craze. The company’s geographic expansion in the US and Japan is well underway, proving continued demand for AI technology as global hyperscalars invest in their AI ambitions.
However, the contract chipmaker is still vulnerable to increased power demand as it begins commercializing its 3nm process.
According to S&P Global, Taiwan Semiconductor’s electricity demand could triple by 2030 due to increased energy demands for advanced processes (7 nm and below) that require extreme ultraviolet (EUV) exposure machines.
Investors can gain exposure to the semiconductor sector through the EA Series Trust Strive US Semiconductor ETF (NYSE:SHOC) and the Columbia Semiconductor and Technology ETF (NYSE:SEMI).
Price Action: TSM stock was down 0.17% at a pre-market price of $180.66 at last check on Monday.
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