TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) could receive as much as €5 billion (NT$173 billion) in subsidies from the German government if it decides to go ahead with a fab in Dresden, Bloomberg reported on Monday (July 24).

Germany is planning to distribute €20 billion to boost chip manufacturing in the country to domestic and foreign companies, with around 75% earmarked for Intel and TSMC, according to the report. The subsidies are set to be handed out by 2027 and will be taken from the country’s Climate and Transformation Fund, Bloomberg said.

The government has already agreed to provide €10 billion in subsidies for a new Intel facility in Magdeburg, the report said. That is about a third of the total investment for the Intel plant.

Meanwhile, the German government is reportedly in the final stage of negotiations with TSMC for a fab in Dresden. Around €5 billion in subsidies has been budgeted, or around half the total cost of the facility, per Bloomberg.

In early May, Bloomberg reported that TSMC was in discussions with NXP Semiconductors NV, Robert Bosch GmbH, and Infineon Technologies AG to build a plant in Dresden to manufacture 28nm chips for the German automotive sector. On May 23, a TSMC executive stated August is the earliest time a decision would be made regarding the German plant.