Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is planning to build more plants in Europe with a focus on the market for artificial intelligence (AI) chips as the chipmaker expands its global footprint, a senior Taiwanese official said.
“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,” National Science and Technology Council (NSTC) Minister Wu Cheng-wen (吳誠文) told Bloomberg TV in an interview that aired yesterday.
Wu did not specify a timeline for TSMC’s further expansion in Europe.
Photo: An Rong Xu, Bloomberg
TSMC in an e-mailed statement said it remains focused on its 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 10 billion euros (US$10.93 billion) chip fabrication plant in Germany’s Dresden for what is to be its first factory in the EU. About half of the funding for that project would be covered by state subsidies, with production slated to start by the end of 2027.
The AI market, including chips for US-based Nvidia Corp and Advanced Micro Devices Inc, would be the most important segment, while other semiconductor companies with alternative designs might also offer opportunities for TSMC, Wu said.
“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 would need to evaluate whether to expand in Dresden or to 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 GmbH 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 emerge as a winner as Prague and Taipei have deepened their relations in recent years.
The government is considering support for TSMC suppliers to invest in a Czech location that is close to Dresden, Wu said.
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 president Tsai Ing-wen (蔡英文) 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 next month. TSMC has so far pledged more than US$65 billion to create three plants in Arizona.
“Short term, maybe it is painful for Taiwanese companies, because it is more expensive if they move over there,” he said. “But in the long run, maybe it is good for them, from my point of view, because they can improve themselves.”
UNCERTAINTIES: Exports surged 34.1% and private investment grew 7.03% to outpace expectations in the first half, although US tariffs could stall momentum The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its GDP growth forecast to 3.05 percent this year on a robust first-half performance, but warned that US tariff threats and external uncertainty could stall momentum in the second half of the year. “The first half proved exceptionally strong, allowing room for optimism,” CIER president Lien Hsien-ming (連賢明) said. “But the growth momentum may slow moving forward due to US tariffs.” The tariff threat poses definite downside risks, although the scale of the impact remains unclear given the unpredictability of US President Donald Trump’s policies, Lien said. Despite the headwinds, Taiwan is likely
When Lika Megreladze was a child, life in her native western Georgian region of Guria revolved around tea. Her mother worked for decades as a scientist at the Soviet Union’s Institute of Tea and Subtropical Crops in the village of Anaseuli, Georgia, perfecting cultivation methods for a Georgian tea industry that supplied the bulk of the vast communist state’s brews. “When I was a child, this was only my mum’s workplace. Only later I realized that it was something big,” she said. Now, the institute lies abandoned. Yellowed papers are strewn around its decaying corridors, and a statue of Soviet founder Vladimir Lenin
UNIFYING OPPOSITION: Numerous companies have registered complaints over the potential levies, bringing together rival automakers in voicing their reservations US President Donald Trump is readying plans for industry-specific tariffs to kick in alongside his country-by-country duties in two weeks, ramping up his push to reshape the US’ standing in the global trading system by penalizing purchases from abroad. Administration officials could release details of Trump’s planned 50 percent duty on copper in the days before they are set to take effect on Friday next week, a person familiar with the matter said. That is the same date Trump’s “reciprocal” levies on products from more than 100 nations are slated to begin. Trump on Tuesday said that he is likely to impose tariffs
HELPING HAND: Approving the sale of H20s could give China the edge it needs to capture market share and become the global standard, a US representative said The US President Donald Trump administration’s decision allowing Nvidia Corp to resume shipments of its H20 artificial intelligence (AI) chips to China risks bolstering Beijing’s military capabilities and expanding its capacity to compete with the US, the head of the US House Select Committee on Strategic Competition Between the United States and the Chinese Communist Party said. “The H20, which is a cost-effective and powerful AI inference chip, far surpasses China’s indigenous capability and would therefore provide a substantial increase to China’s AI development,” committee chairman John Moolenaar, a Michigan Republican, said on Friday in a letter to US Secretary of
RSS