TSMC, the world's largest chipmaker, is expanding its global operations with plans to open more factories in Europe, focusing on the artificial intelligence (AI) chip market. Reports indicate that TSMC has started constructing its first wafer plant in Dresden, Saxony, Germany, and plans to build several more plants targeting different market sectors.
Although TSMC has not disclosed a timeline for its European expansion, the company remains committed to its existing global expansion projects. However, there are currently no new investment plans. The chipmaker continues to focus mainly on semiconductor production in Taiwan but is investing billions of dollars into new facilities in the United States, Japan, and Germany to mitigate geopolitical risks.
In August, TSMC began construction on a €10 billion ($10.9 billion) chip manufacturing facility in Dresden, marking its first plant in the European Union (EU). Approximately half of the funding for this project comes from local subsidies, and production is expected to start by the end of 2027. TSMC is also considering other EU locations for new wafer plants, with the Czech Republic emerging as a potential site due to existing academic collaboration with Taiwan.
In North America, TSMC has pledged over $65 billion to establish three plants in Arizona. The AI market is a key focus for TSMC, with clients like NVIDIA and AMD relying on TSMC for chip production. Other semiconductor companies' AI chip requirements may also bring additional business to TSMC.
