In an interview aired on Bloomberg Television on Monday, Dr. Wu Cheng-wen, the chairperson of the National Science Council of the Republic of China, revealed that TSMC is planning to expand its manufacturing facilities in Europe, particularly focusing on the AI chip market.
Dr. Wu mentioned that TSMC has already begun construction on its first wafer fab in Dresden and is in the planning stages for several others targeting various market segments. However, he did not provide a specific timeline for these expansions. TSMC, through an email response, indicated that it is currently focused on its existing global expansion plans and does not have any new investment projects at this time.
In August of this year, TSMC commenced work on a €10 billion (approximately $11 billion) wafer fab in Dresden, with half of the funding supported by government grants, and production is expected to begin by the end of 2027.
Dr. Wu emphasized that supplying companies like NVIDIA and AMD in the AI sector will be pivotal. He added that other semiconductor companies with different designs could also present opportunities for TSMC. “They might find a foothold in the European market, which is why TSMC is considering planning more wafer fabs,” he stated. He also pointed out that TSMC needs to evaluate whether to expand in Dresden or establish facilities in other parts of the EU.
Despite the presence of established chipmakers such as NXP and Infineon, who focus on mature technologies in the industrial and automotive sectors, Europe is also witnessing the emergence of next-generation chip design firms, like Germany’s Black Semiconductor and the Netherlands’ Axelera AI.
According to Dr. Wu, the Taiwanese government is contemplating support for TSMC’s suppliers to invest in the Czech Republic, which is close to Dresden. He noted that he is actively working to foster joint research and development initiatives between Taiwan and Czech academia.
Czechia has been strengthening its trade and informal relations with Taipei, with Dr. Wu and several other Taiwanese officials visiting the Czech Republic over the past year. Former President Tsai Ing-wen even designated Czechia as the first stop on her European tour.
Moreover, Dr. Wu remarked that regardless of the outcome of the U.S. presidential election in November, he anticipates that Taiwan’s chip industry will face increased pressure to expand in the United States. So far, TSMC has committed over $65 billion to build three factories in Arizona.
“While it may be challenging for Taiwanese companies in the short term due to higher relocation costs, I believe it could be beneficial for them in the long run as they enhance their capabilities,” he concluded.
