Asian Tech Press (Dec 23) -- TSMC is in talks to build its first European chip plant in Germany, sources said.

TSMC is in talks with suppliers for its first European factory, according to a Nikkei report. The company plans to build its first European plant in the German city of Dresden, which will enable TSMC to take advantage of the rapidly growing demand from car companies in the region.

The world's largest chipmaker will send a team of executives to Germany early next year to discuss the level of government support for the future plant and the ability of the local supply chain to meet its needs, the report said, citing people familiar with the matter.

The visit will be the second by TSMC executives in Europe in six months, with a decision in sight soon, the sources said.

The sources also disclosed that TSMC is currently in talks with several material and equipment suppliers, and is seeking their support and investment for a plant in Germany.

TSMC's factory in Germany will focus on production lines for 22nm and 28nm chips, similar to those that the company plans to produce at its factory in Japan in partnership with Sony.