Challenges Ahead for TSMC as it Plans to Establish a Manufacturing Plant in Europe

Taiwan Semiconductor Manufacturing Company (TSMC) is facing challenges as it plans to establish a manufacturing plant in Europe, according to a report by Taiwan's "Economic Daily News". As an electronics component distributor, this news is important to consider when planning your supply chain.

Firstly, TSMC will face a challenge in terms of labor costs and scheduling in Europe. Compared to the US and Japan, European workers generally have a set schedule and may not be able to work overtime. Secondly, water and electricity supply may also be an issue due to the potential high cost and risk associated with energy use in Europe. Finally, tax and fee considerations will depend on the political and legal systems of each European country, with some countries having higher tax rates and greater fees.

Despite these challenges, TSMC is still considering investing billions of dollars in a manufacturing plant in Europe, with a possible start date of 2024 or 2025. TSMC has sent a team of executives to Germany to assess local government support and the ability of the local supply chain to meet their needs. This visit is the second time in six months that TSMC executives have visited Germany to assess the feasibility of establishing a manufacturing plant.