Globalfoundries reports concerns about state aid for TSMC in Dresden

FRANKFURT (Dow Jones) — The US chip manufacturer Globalfoundries sees a distortion of competition in favor of the Taiwanese world market leader in view of the federal government’s planned billion-euro subsidy for the TSMC factory in Dresden. It’s “like feeding the biggest tiger steroids,” Saam Azar, the manager responsible for government and legal affairs at Globalfoundries, told the news magazine Spiegel.

Globalfoundries have therefore already registered concerns with the EU Commission. A formal complaint will also be considered as soon as the federal government and TSMC have registered the project in Brussels.

On August 8, Berlin announced that it wanted to support the construction of a semiconductor factory by TSMC in Dresden with up to 5 billion euros, which corresponds to 50 percent of the planned investment sum. The plant is to be built in the vicinity of the Globalfoundries plant in Dresden. TSMC wants to produce semiconductors that “directly compete with our products,” Azar said.

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DJG/rio/sha

(END) Dow Jones Newswires

August 25, 2023 07:28 ET (11:28 GMT)

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