TSMC (TSM, Financial) has refuted reports suggesting it plans to build more factories in Europe to target the AI chip market. The company clarified that there might have been a misunderstanding and it remains focused on its current global expansion projects with no new investment plans at this time.
Wu Cheng-wen, head of Taiwan's Science and Technology Commission, did not disclose any timetable for TSMC's potential expansion in Europe. He mentioned that the AI chip market, including products from NVIDIA (NVDA) and AMD (AMD), remains a key segment. He indicated that TSMC sees opportunities with other semiconductor companies that have alternative designs and may consider expanding in cities like Dresden, Germany, or elsewhere in the EU.
Wu also expressed interest in fostering joint research and development projects between Taiwan and the Czech Republic's academic sectors.
TSMC has already invested billions to establish new facilities in the U.S., Japan, and Germany. In August, the European Commission approved Germany's provision of €5 billion ($5.5 billion) in state aid to support the European Semiconductor Manufacturing Company (ESMC) in building a new microchip plant in Dresden. ESMC is a joint venture that includes TSMC, Bosch, NXP Semiconductors (NXPI), and Infineon Technologies (IFNNY), with a total investment expected to exceed €10 billion ($11 billion). This plant will be operated by TSMC.
Wu also noted that Taiwanese chip companies might face additional pressure to expand in the U.S., regardless of the outcome of the November presidential election. He sees this as a potential benefit in the long run, as it could help elevate their capabilities. TSMC has already committed to investing over $65 billion to build three facilities in Arizona.
