TSMC “already planning” for more European fabs

With AI chips in mind, TSMC is considering building more chip plants in Europe, Taiwan’s National Science and Technology Council Minister Wu Cheng-wen told Bloomberg TV. “They’ve started construction of the first fab in Dresden, they’re already planning the next few fabs in the future for different market sectors as well,” he said. TSMC has commented that it currently has no new investment plans to share.

Construction of the ESMC Dresden plant – a joint venture between TSMC, Infineon, NXP and Robert Bosch – kicked off in August. The plant will manufacture 28/22-nanometer planar CMOS and 16/12-nanometer FinFET chips, with a particular focus on automotive applications. Production is targeted to begin by the end of 2027.

The Dresden project is one arm of TSMC’s strategy to globally diversify its manufacturing base. The Taiwanese foundry has also announced two fabs in Japan and has recently fired up production in Arizona. The surge in demand for AI chips may prompt the firm to intensify its efforts. AMD CEO Lisa Su has said she expects the AI chip market to be worth 500 billion dollars by 2028 – roughly the same size as the entire semiconductor market last year.

If TSMC would go ahead with an ‘AI plant’ in Europe, it could be the continent’s first leading-edge facility now that Intel has put its Magdeburg facility on hold. The plans would likely hinge on the availability of state subsidies.