TSMC Plans Expansion in Europe with Focus on AI Chip Manufacturing

New TSMC chip manufacturing plants planned for Europe

Taiwan Semiconductor Manufacturing Co (TSMC) is building a new plant in Germany in order to address ongoing interest and continued investments in AI. The news comes as part of the company's efforts to expand globally, including across Europe, the US and Asia - a move confirmed by Taiwan's National Science and Technology Council Minister, Wu Cheng-wen (via Bloomberg TV). Wu confirmed that the construction of a facility in Dresden, Germany had already started, with opening more plants already on the agenda. The Minister confirmed: "[TSMC is] already planning the next few fabs in the future for different market sectors as well." TSMC, the world's largest chipmaker, is reportedly investing billions to build new manufacturing sites in the US, Japan and Germany for a handful of reasons, including meeting demand for powerful components and mitigating risks associated with ongoing geopolitical tensions in China, which has resulted in import and export restrictions and tariffs in recent years. The company's $10.9 billion chip fabrication facility in Dresden is expected to be operational by the end of 2027 thanks to around 50% funding from state subsidies. Alluding to ambitions to work more closely with the European Union, Wu hinted at opportunities from next-generation European chip designers like Germany's Black Semiconductor and the Netherlands' Axelera AI. However, US pressures could continue far beyond the upcoming presential election. We added: "Short term, maybe it's painful for Taiwanese companies because it's more expensive if they move over there... But in the long run, maybe it's good for them, from my point of view, because they can improve themselves." Moreover, relations between Taiwan and the Czech Republic have strengthened in recent months, which could represent an open door for TSMC into Europe.

TSMC could build more fabs in Europe: Chairman of Taiwan's National Science Council

Wu Cheng-wen, the chairman of Taiwan's National Science Council, said in an interview with Bloomberg that TSMC plans to build more fabs in Europe in addition to its facility near Dresden, Germany. While the Dresden fab built by ESMC, a joint venture between TSMC, Bosch, Infineon, and NXP, will focus primarily on chips for Germany's automotive industry, other fabs are said to focus on the AI sector, which implies on fairly advanced process technologies. "They have started construction of the first fab in Dresden; they are already planning the next few fabs in the future for different market sectors as well," Wu Cheng-wen said in the interview with Bloomberg TV. Wu did not provide details on the timing of TSMC's additional expansion plans in Europe, which pretty much means that at this point this expansion plans are essentially speculations. In an emailed response to Bloomberg, TSMC stated that it is concentrating on its ongoing global projects and currently has no new investment initiatives underway. TSMC's global expansion is part of a broader strategy to reduce reliance on production in Taiwan amid geopolitical tensions with China. The company is simultaneously building new facilities in the U.S. and Japan. TSMC's foreign investments are aimed, among other things, at safeguarding against potential disruptions in its own semiconductor supply chain. In addition, local fabs help TSMC to land orders from companies whose clients demand that their chips be made domestically (e.g., the U.S. government). The ESMC fab, TSMC's first in the European Union, represents a significant investment of approximately €10 billion ($10.9 billion). Roughly half of the project's cost is covered by government subsidies. The plant is expected to start production by the end of 2027. When it comes online, the ESCM fab is projected to have capacity of 40,000 300mm wafer starts per month (WSPM) using TSMC's 12nm, 16nm, 22nm, and 28nm-class process technologies. If TSMC is to build another fab in Europe with a focus on the AI sector, it might need to address the needs of such companies as AMD and Nvidia, which currently use sophisticated process technologies, such as TSMC's N5 and N4 (5nm and 4nm-class, respectively). The TSMC fabs that can manufacture chips on these production nodes cost north of $20 billion and building them in Europe will either require TSMC to get huge government grants, or commitments from customers with significant demand for wafers, such as AMD, Broadcom, and Nvidia. While the AI sector is expanding quickly, it remains to be seen whether it can use all the advanced capacity currently being built in Taiwan and the U.S.

TSMC Plans More Chip Plants in Europe, Taiwan Official Says

Wu expects to see Taiwanese chip firms to face expansion pressure in US Taiwan Semiconductor Manufacturing Co. is planning more plants in Europe with a focus on the market for Artificial Intelligence (AI) chips, according to a senior Taiwanese official, as the chipmaker expands its global footprint. "They have started construction of the first fab in Dresden, they are already planning the next few fabs in the future for different market sectors as well," Taiwan's National Science and Technology Council Minister Wu Cheng-wen told Bloomberg TV in an interview aired on Monday. Wu did not specify a timeline for the Taiwanese chipmaker's further expansion in Europe. TSMC said in an emailed statement it remains focused on its current global expansion projects and has no new investment plans at this time. TSMC, which is the world's biggest chipmaker and produces most of its semiconductors in Taiwan, is spending tens of billions of dollars to set up new sites in the US, Japan and Germany, partly to hedge against rising geopolitical tensions with China. It broke ground in August on a EUR 10 billion ($10.9 billion roughly Rs. 91,789 crore) chip fabrication plant in Germany's Dresden for what will be its first factory in the European Union. About half of the funding for that project will be covered by state subsidies, with production slated to start by the end of 2027. Wu said the AI market, including chips for US-based Nvidia Corp. and Advanced Micro Devices Inc., will be the most important segment, while other semiconductor companies with alternative designs may also offer opportunities for TSMC. "Maybe they can work on the European market as well, so TSMC is looking for that for planning their next few fabs," he said, adding that the company will need to evaluate whether to expand in Dresden or build in other parts of the EU. While established European chipmakers including NXP Semiconductors NV and Infineon Technologies AG are focused mostly on mature technologies for the industrial and automotive sectors, a number of next-generation chip designers have emerged in Europe, including Germany's Black Semiconductor and Axelera AI in the Netherlands. TSMC's overseas factories are also creating opportunities for countries and cities nearby to secure investments from its suppliers. For the Dresden site, the Czech Republic appears to poised emerge as a winner as Prague and Taipei have deepened their relations in recent years. The Taiwanese government is considering support for TSMC suppliers to invest in a Czech location that is close to Dresden, according to Wu. He said he is also seeking to facilitate joint research and development programs for academics in Taiwan and the Czech Republic. Prague has official diplomatic relations with Beijing, but it has been forging closer trade and informal ties with Taipei. Several senior Taiwanese officials, including Wu, have traveled to the Czech Republic over the past year. Former Taiwanese President Tsai Ing-wen is also visiting the country as the first stop of her European trip. Separately, Wu said he expects Taiwanese chip firms to face further pressure to expand in the US regardless of the outcome of the presidential election in November. TSMC has so far pledged more than $65 billion to create three plants in Arizona. "Short term, maybe it's painful for Taiwanese companies because it's more expensive if they move over there," he said. "But in the long run, maybe it's good for them, from my point of view, because they can improve themselves."

New TSMC chip plants planned for Europe says Taiwan official

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Company, is set to expand its operations in Europe, according to a Taiwanese official. A leading maker of AI chips, Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning more plants in Europe. Taiwan's National Science and Technology Council Minister Wu Cheng-wen told Bloomberg TV: "They have started construction of the first fab (semiconductor fabrication plant) in Dresden, they are already planning the next few fabs in the future for different market sectors as well." A spokesperson for TSMC told Euronews Business that the company remain focused on their current global expansion projects and has "no new investment plans at this time". The current projects include new factories in the US and one in Germany. TSMC launched the construction of the new factory in Dresden in August 2024 in the presence of the European Commission president Ursula von der Leyen and the German Chancellor Olaf Scholz. The new semiconductor fabrication plant is the first in the EU. Total investments are expected to exceed €10bn euros, however, the project was granted €5bn in subsidies. It will be carried out in partnership with Bosch, Infineon and NXP "to meet the semiconductor needs of the rapidly growing European automotive and industrial sectors," said TSMC Chairman & CEO C.C. Wei at the event. 40% jump in the profit on the way? The chipmaker's third-quarter profit is expected to jump 40% on strong demand for AI chips, according to an LSEG SmartEstimate of 22 analysts. Last week, TSMC reported a strong 39.6% increase in revenue for September 2024, compared to the previous year. The company is going to report its third-quarter profit on Thursday. TSMC is expected to report net income of NT$298.2bn (€8.49bn) for the quarter ended 30 Sept, which compares with a net income of NT$211bn in the same period in 2023. The world's largest contract chipmaker, with customers including Apple and Nvidia, has benefited from the surging demand due to the rise in artificial intelligence. The share price of the Taipei-listed TSMC has gone from $91 to $191 in the last 12 months, and gained almost 80% since the beginning of 2024.

TSMC Plans More Chip Plants in Europe, Taiwan Official Says

Taiwan Semiconductor Manufacturing Co. is planning more plants in Europe with a focus on the market for artificial intelligence chips, according to a senior Taiwanese official, as the chipmaker expands its global footprint. "They have started construction of the first fab in Dresden, they are already planning the next few fabs in the future for different market sectors as well," Taiwan's National Science and Technology Council Minister Wu Cheng-wen told Bloomberg TV in an interview aired on Monday.

TSMC to Focus on AI Chips as it Expands European Operations - Phandroid

With more and more software companies and manufacturers adopting generative AI platforms in the past couple of years, it was only a matter of time before we saw the industry double-down on AI, and even leading chip-makers are now focusing their efforts on AI-capable hardware. Take for example Taiwan Semiconductor Manufacturing Corporation (TSMC) - known for its work on Qualcomm's Snapdragon-brand chips, it's now reported that the company is planning more chip plants within Europe, according to new reports. Speaking to Bloomberg TV, Taiwan's National Science and Technology Council Minister Wu Cheng-wen states that TSMC is planning to expand its operations for AI chips. They have started construction of the first fab in Dresden, they are already planning the next few fabs in the future for different market sectors as well. READ: Pixel 9 could be the last to use Samsung-made Tensor chipsets He adds that special focus will be given to the AI market segment, and this will include chips for US-based companies such as Nvidia and Advanced Micro Devices (AMD). Earlier on, TSMC pledged more than $65 billion towards the creation of three plants in Arizona.