TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) is sending a team to Germany this month as it proceeds with its plans to build a factory in the European country, a report claimed.

CNA wrote that the world’s largest contract chipmaker is seeking to set up a fab in Dresden and a team will be sent for evaluation of the plan in October, citing Capital, a German-language monthly.

Dresden, the capital city of the state of Saxony, boasts one of Europe’s largest clusters for semiconductor businesses, earning it the epithet of Silicon Saxony. Infineon Technologies, NXP Semiconductors, GlobalFoundries, and Bosch are some of the companies having plants in the city.

Germany’s economics ministry declined to comment on the rumored plan but pledged subsidies for any such projects by foreign semiconductor firms. A government spokesperson said the country aims to boost its research and development capabilities and production capacity by providing conditions for diversified supply chains, per CNA.

A TSMC spokesperson said no concrete decisions have been made.

The company said last week it would not comment on the matter before an earnings call was due to take place on Thursday (Oct. 13). The government of Taiwan has sought to assuage fears of an impact on TSMC by the Biden administration’s chip rules, as Nikkei Asia reports that the company has obtained a one-year license to continue sourcing U.S. equipment for its expansion in China.