[News] TSMC Confirms Construction for Its First European Chip Plant to Commence in Q4, as Scheduled

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Paul de Bot, President of TSMC Europe, confirmed during a seminar in the Netherlands on May 14th that TSMC will start construction of its first chip plant in Europe in Dresden, eastern Germany. The project is scheduled to commence in the fourth quarter of this year, with production expected to begin in 2027.

Last August, TSMC announced the joint venture factory project in Germany, with a total investment of USD 11 billion. Apart from TSMC, Infineon, NXP, and Bosch each holds a 10% stake.

According to a report from Reuters, Kevin Zhang, Senior Vice President of Business Development and Overseas Operations Office at TSMC, stated that the project has received strong support from the European Union and the German government, thus TSMC is confident in obtaining subsidies under the European Chips Act.

Kevin Zhang stated that the semiconductor ecosystem in Europe is currently exciting, indicating that setting up a foundry in Germany would allow TSMC to directly access its major automotive customers.

It is understood that TSMC’s fab in Germany will initially focus on the 22-nanometer process, mainly producing automotive microcontrollers. There is a possibility of expanding to produce more advanced chips in the future.

In addition, Intel, another semiconductor giant, had also planned a significant investment of EUR 30 billion for constructing two new fabs in Magdeburg, Eastern Germany.

TSMC’s global expansion has reached locations in China, the United States, Japan, and Germany, solidifying its goal of being a “long-term and trustworthy provider of technology and capacity.”

TSMC’s Kumamoto Plant in Japan held its opening ceremony in February, with mass production expected to begin in the fourth quarter. Kevin Zhang also emphasized that TSMC will continue to expand its operations in Japan.

In response to growing customer demand, TSMC announced in February plans to begin construction of its Kumamoto Fab 2 by the end of the year, which will be its second, more advanced fab in Japan, scheduled to start operations by the end of 2027.

In contrast, the construction progress of its Arizona plant in the United States has been relatively slow. Due to the delay in the first phase’s production timeline from the end of 2024 to the first half of 2025, the production schedule for the second phase will also be postponed to start after 2027.

Read more

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