Join for quick access. Enter your email below and we'll send confirmation plus sign you up to our newsletter.
By submitting your information, you confirm you are aged 16 or over,
have read our
Privacy Policy
and agree to the
Terms & Conditions. Geographical rules apply.
Stay On the Cutting Edge: Get the Tom's Hardware Newsletter
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
You are now subscribed
Your newsletter sign-up was successful
Join the club
Get full access to premium articles, exclusive features and a growing list of member rewards.
An account already exists for this email address, please log in.
GlobalFoundries Criticizes German Subsidies to Rival TSMC
GlobalFoundries opposes the German government's plan to subsidize TSMC's new fab near Dresden. The subsidy amounts to up to €5 billion, which GlobalFoundries argues will further strengthen TSMC's already dominant market position. The situation has led to legal concerns, lobbying efforts, and a potential formal complaint to the EU Commission by GlobalFoundries, reports Handelsblatt.
Earlier this month, TSMC, in collaboration with partners Bosch, Infineon, and NXP, unveiled plans to build a 12nm and 16nm-capable fab near Dresden, Germany. The fab is expected to cost €10 billion, and half of the sum will likely come from the German government via various subsidies. GlobalFoundries, which has a fab near Dresden, feels disadvantaged by this move.
GlobalFoundries is lobbying the German government for similar support. The company argues that it has received far less state aid in its 25 years of Dresden operation than what TSMC is set to receive. GlobalFoundries, which inherited its fab from AMD, sees itself as a co-founder of the technology cluster 'Silicon Saxony' in Dresden and believes it should also be considered for state aid.
Saam Azar, responsible for government and legal affairs at GlobalFoundries, stated that TSMC aims to produce semiconductors that directly compete with products made by GlobalFundries. Moreover, TSMC plans to collaborate with three of GlobalFoundries' biggest customers: Infineon, Bosch, and NXP.
The situation has led Globalfoundries to register its concerns with the EU Commission. The company questions whether the massive subsidy to TSMC aligns with European laws. Saam Azar indicated that a formal complaint might also be filed as soon as the German government and TSMC officially register the project in Brussels.
Stay On the Cutting Edge: Get the Tom's Hardware Newsletter
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
Completely agree. Why does the largest contract manufacturer, with the most advanced process node, need more subsidies? Given the capital intensive nature of the industry, directing more money towards the most successful player is illogical and anti-competitive, especially since they won't even be producing anything that a smaller player couldn't also produce.
I'm against government subsidies this large to corporations in general, but it's extra stupid when it goes to the biggest corporation in the industry while the smaller players are left out. It's not even going toward a leading-edge node, but instead it'll be used to produce a class of product several smaller players are more than capable of producing. I'd be seriously mad if I were German. Does one of the world's richest corporations really need the subsidies?
Completely agree. Why does the largest contract manufacturer, with the most advanced process node, need more subsidies? Given the capital intensive nature of the industry, directing more money towards the most successful player is illogical and anti-competitive, especially since they won't even be producing anything that a smaller player couldn't also produce.
Very good point. It would be different if TSMC were building a 2nm fab. Thanks for pointing that out.
