Get ready for a major tech boost in Europe. Taiwan Semiconductor Manufacturing Company, the world’s largest contract chip maker, just announced it’s opening its first European chip design center in Munich, Germany. The new hub is set to launch in the third quarter of 2025.
What’s driving this move?
The demand for high-performance, energy-efficient chips is on the rise. Think self-driving cars, industrial automation, artificial intelligence, and the Internet of Things. TSMC’s new design center will focus on creating chips that meet these needs.
Munich was a strategic choice due to its proximity to key European customers. This move reinforces TSMC’s commitment to expanding its global presence and supporting the region’s industrial base.
Not a newcomer to Germany
TSMC already has a project in the works in Dresden, Germany, where it’s building a chip factory with partners Infineon, NXP, and Robert Bosch. The joint venture, European Semiconductor Manufacturing Company (ESMC), has received €5 billion in state subsidies and is expected to start production by the end of 2027.
This initiative aligns with the European Union’s goal to boost its self-sufficiency in semiconductor production. The EU wants to increase its share of global chip production from 10% to 20% by 2030, as outlined in the European Chips Act.
With its new design center in Munich and the chip factory in Dresden, TSMC is strengthening its expansion plans in Europe. This move will contribute to the resilience of the semiconductor supply chain and support technological innovation in the region.
The total investment for the Dresden factory is estimated at €10 billion. This significant investment underscores TSMC’s commitment to the European market and its role in shaping the future of the tech industry.