Taiwan is partnering with the Czech Republic to plan to build a semiconductor cluster in the EU member state.
According to a report by the Taipei Times, Joseph Wu, secretary-general of Taiwan’s National Security Council, said Taiwan looks forward to cooperation between Taiwanese chipmaker TSMC and the Czech Republic, which could help transform the Czech Republic into one of Europe’s key semiconductor clusters over the next three to five years.
Wu said TSMC needs a comprehensive supply chain in Europe as it builds an advanced wafer fab in Dresden, Germany.
He said sound infrastructure such as stable electricity and water supplies, as well as a large pool of talented engineers, are prerequisites for Taiwanese companies to consider investing overseas.
He added that Taiwan and the Czech Republic would work closely to ensure these conditions were met.
Taiwanese investors will also be considering potential investment incentives offered by the Czech government.
TSMC began construction of a 12-inch wafer fab in Dresden on Aug. 20 through European Semiconductor Manufacturing Company (ESMC), a joint venture that also includes Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors NV.
Total investment in the lab is estimated to exceed 10 billion euros (US$11.1 billion), with TSMC taking a 70% stake and the three partners taking 10% each. The EU Commission has approved a 5 billion euro subsidy for the project under EU chip law.
