Benzinga | Jul 26, 2021 03:36AM EDT

Apple Supplier TSMC Explores Making First EU Chip Plant In Germany

Apple Inc (NASDAQ:AAPL) chip supplier Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) said on Monday it is in early-stage talks to build the company's first semiconductor factory in Europe, Reuters reports.

What Happened: The Taiwan-based chip supplier said it was too early to say whether it will build factories in Germany and that talks were in the early stages.

Besides TSMC, the European Commission has held talks with key rival Intel Corp (NASDAQ:INTC), as Europe looks to boost semiconductor production and insure itself from the global semiconductor shortages.

"We are currently doing reviews on Germany seriously, but it's still in very early stages," TSMC Chairman Mark Liu said at the company's annual shareholder meeting, as per Reuters.

See Also: Apple Supplier TSMC Plans To Build Advanced Chip Packaging Plant In US: Report

Why It Matters: Taiwan-based TSMC is the world's largest contract chipmaker. Amid an ongoing global semiconductor shortage, TSMC has become key to finding quick a resolution and ensure that the pandemic-induced chip shortage -- that has forced automakers to cut production and hurt manufacturers of smartphones, laptops and even appliances -- does not repeat.

TSMC had in July indicated it could soon have its first chip packaging unit outside of Taiwan in the United States and Japan amid concern over the concentration of chipmaking capability in its home country, which caters to most of the world's chip needs and is geographically close to political rival China.

Price Action: TSMC shares closed 0.2% higher at $116.79 on Friday.

For news coverage in French, Italian, or Spanish, check out Benzinga France, Benzinga Italia, or Benzinga Espa?a

Photo: Courtesy of TSMC