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.”
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS