A 300mm wafer fab that TSMC built on its home ground (Taiwan Semiconductor Manufacturing Company)
TSMC’s Europe president, Paul de Bot, stated: “The centre was intended to support European customers in designing high-density, high-performance, and energy-efficient chips with a focus on applications in automotive, industrial, AI, and the internet of things.” The center will cater to industries requiring specialized semiconductor solutions, strengthening Europe’s technological capabilities.
In 2024, TSMC expanded its European presence by partnering with German firms Robert Bosch and Infineon Technologies, alongside Dutch chipmaker NXP Semiconductors, to create the European Semiconductor Manufacturing Company (ESMC). This collaboration is building a €10 billion fabrication plant in Dresden, Germany. Construction began in August 2024, with completion expected by 2027. The Dresden facility will produce 28 to 16-nanometer chips, known as legacy chips, for automotive and household appliance applications, differing from cutting-edge chips below 7 nanometers.
Currently, TSMC conducts most of its research and development in Hsinchu, Taiwan. The company is also planning a similar R&D center in the United States to serve clients like Apple, Nvidia, and AMD. The Munich center marks a strategic step to diversify TSMC’s global R&D footprint, supporting European customers with tailored chip designs.
The Munich facility is expected to boost innovation in chip technology, particularly for energy-efficient solutions in high-demand sectors. By establishing a local presence, TSMC aims to streamline collaboration with European industries, enhancing supply chain efficiency and meeting regional market needs. The investment reflects TSMC’s commitment to supporting global technological advancement while addressing specific industry requirements in Europe.
This initiative aligns with Europe’s efforts to strengthen its semiconductor industry, reducing reliance on external suppliers. The Dresden plant and Munich R&D center will create opportunities for job growth and technological development in Germany, contributing to the region’s economic and industrial resilience. TSMC’s expansion underscores the growing importance of localized semiconductor production to meet diverse global demands.
