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TSMC to Commence Construction of First European Chip Plant in Dresden, Expanding Global Footprint

Set to begin production in 2027, TSMC's new facility in Germany marks a strategic move into the European semiconductor market, with major automotive firms as potential key clients
Taiwan
t 2330.TW Blue Chip 150 OM 60 Semicon 75 Tech 350
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Paul de Bot, President of TSMC Europe, announced at a seminar in the Netherlands that the semiconductor titan will start building its first chip manufacturing plant in Europe, located in Dresden, Germany, by the end of this year. This development is part of an ambitious joint venture that includes a $11 billion investment, with notable partners such as Infineon, NXP, and Bosch each holding a 10% stake.

Scheduled for production in 2027, the Dresden facility is a strategic pivot towards enhancing TSMC’s presence in Europe, particularly within the automotive sector—a key market for advanced semiconductors. The plant will initially focus on the 22-nanometer process for automotive microcontrollers, with potential future expansion into more sophisticated chip technologies.

The project has garnered robust support from the European Union and the German government, bolstered by subsidies expected under the European Chips Act. Kevin Zhang, TSMC’s Senior Vice President of Business Development and Overseas Operations, highlighted the vibrant semiconductor ecosystem in Europe and the strategic advantage of proximity to major automotive clients.

This European expansion is part of TSMC’s broader strategy to establish itself as a “long-term and trustworthy provider” across global markets, with operations extending to China, the United States, Japan, and now Germany. The company’s commitment to its global facilities was underscored by the recent inauguration of its Kumamoto Plant in Japan and the planned construction of a second, more advanced fab there.

However, TSMC faces challenges in the United States, where its Arizona plant’s construction has encountered delays, pushing back the production timelines of its two phases to the first half of 2025 and post-2027, respectively.

As TSMC forges ahead with its international expansions, the company remains poised to meet the increasing global demand for semiconductor technology, especially from the automotive and high-tech sectors.

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