TSMC site in Europe + BASF Verbund begins operations
When a global chip giant invests in Europe, it is highly welcome news. It reduces dependencies on other countries, shortens supply and communication routes to industrial customers, and creates high-quality jobs. After Intel has already been persuaded to build plants in Germany, all eyes are now on the Taiwanese market leader TSMC. The EU Commission is currently campaigning for such an investment, as is Germany. For background information, see our analysis below.
Whether it's German Chancellor Scholz, Foreign Minister Baerbock, the head of Deutsche Bank or major economic research institutes – warnings about excessive dependence on China have increased in recent months. How does BASF's €10 billion investment in Guangdong fit into the picture? The new BASF plant is the largest single investment ever made by a German company in the People's Republic, as Fabian Kretschmer writes. This step is not without risk for the company. If relations with China deteriorate even faster, the chemical giant will find itself in a bad spot.
And the company has already had a bad experience with Russia. For decades, BASF expanded its gas trade with Gazprom. Even a year after the annexation of Crimea, the company still handed over German gas storage facilities to its Russian partner in exchange for shares in extraction projects in Siberia. These deals have contributed significantly to Germany's dependence on Russian gas. Is the company taking too great a risk again with its €10 billion investment in China?