Apple chip-maker eyes new production facility in Germany


Apple chip prices to rise in 2022
TSMC is working hard (and spending big) to boost its output.
Photo: TSMC

Future Apple devices could be powered by chipsets manufactured in Germany, with the company’s primary silicon supplier in talks over a new production facility in western Europe, according to a new report.

Negotiations are said to be in the early stages for now, so it’s far from a done deal. TSMC SVP Lora Ho said a number of factors will play a part in its decisions, including government subsidies and the availability of local talent.

TSMC eyes new chip facility in Germany

TSMC has long been one of Apple’s biggest component suppliers, responsible for manufacturing the A-series chips that power iPhone, iPad, Apple TV, and more — as well the the M-series processors found in the latest Mac models.

The Taiwanese firm also manufactures for a number of other large names, including Intel, Qualcomm, AMD, and Nvidia. Most of its manufacturing currently takes place in Asia, but TSMC has big plans to expand into other regions.

One of those could be Europe, according to TSMC sales chief Lora Ho. Talks with the German government are underway after expansion plans were confirmed back in June, but a final decision is yet to be made.

Government subsidies will play a part

Government subsidies, customer demand, and the local talent pool “will influence TSMC’s final decision,” Bloomberg reports. However, Ho admitted TSMC is yet to discuss incentives with German authorities.

This is one of many moves TSMC is making to boost its production capabilities. It is also in negotiations with Sony over a $7 billion plant in Japan, and will begin mass-production at a new $12 billion facility in Arizona in early 2024.


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