TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is in discussion with partners to invest up to US$11 billion (NT$337 billion) in a chip fab in Saxony, Germany, Bloomberg reported on Wednesday (May 3).

The project would see TSMC teaming up with NXP Semiconductors NV, Robert Bosch GmbH, and Infineon Technologies AG to build a plant that would manufacture 28nm chips, sources told Bloomberg. The venture will include government subsidies and a budget of at least US$7.76 billion, with total investment closer to US$11 billion, sources said.

The people told Bloomberg that plans could still change as a final decision has not been made yet. TSMC Spokesperson Nina Kao (高孟華) told the outlet that the Taiwanese chipmaker is still assessing whether to build a facility in Europe, without going into further detail. Meanwhile, NXP, Bosch, Infineon, and Germany’s Economy Ministry declined to comment on the plans.

To receive German government subsidies, the chip fab would first require approval from the European Commission, while the companies involved are in negotiations with officials on the amount of state aid, sources told Bloomberg.

If the project goes ahead, it would be TSMC’s first plant in Europe. TSMC is currently expanding its international footprint with facilities under construction in the U.S. and Japan.