TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) said Friday (March 10) it was still considering setting up a fab in Europe, rejecting reports it was turning its attention toward Singapore.

Previous reports hinted the world’s largest contract chip manufacturer had chosen Germany as its next production base, partly because of its large car industry’s need for computer chips. However, recent media reports suggested the level of financial aid coming from the European Union and from the German authorities might not be sufficient to persuade the company to set up shop, CNA reported.

Instead, Singapore was willing to offer tax benefits and subsidies for the use of water and electricity, benefiting the production of 12 inch wafers for memory chips, the report said.

Responding to the media discussions, TSMC said it was still evaluating the setting up of a fab for automotive chips in Europe based on the needs of customers and on the level of support from government. In addition, it is also considering building a second fab in Japan.

As to other regions and countries, the company did not exclude any possibilities, but there were no concrete plans for such factories at the moment.