TSMC could open a chip factory in Europe

TSMC has recently opened a plant in the United States to supply chips to Apple, Nvidia and other companies. But while committed to making that center operational by 2024, TSMC seems to be in talks to open a factory chips also in Europeprobably in Germania. But it will mainly serve to supply chips to the automotive sector.

TSMC could open a chip factory in Europe

According to reports from Nikkei Asia, the Taiwanese chipmaker appears to be in “discussion with some key suppliers regarding the first potential European plant in the German city of Dresden”. The manufacturer would find in Germany the perfect ecosystem for the production of automotive chips, a sector that increasingly needs cutting-edge processors.

The company has already sent several high-level managers to Germany earlier this year to discuss the possible government support for the construction of the plants. But also to evaluate the capacity of the local supply chain and logistics.

The final decision for this billionaire investment will undoubtedly also depend on the possible commitment of the German government and perhaps also at the European level. But sources close to the company say the construction of the plant could start as early as 2024.

According to Nikkei Asia sources, the decision has been delayed after the Russian invasion of Ukraine. But given the growing demand for chips for cars, which is slowing down the production of European vehicles, could accelerate.

TSMC should focus on 22 and 28 nanometer chips, similar to those it is developing in Japan with Sony. At the moment, the Taiwanese company sells 65% of its products in America (Apple, Nvidia, AMD) and only 6% in Europe, Africa and the Middle East. This factory could change the percentages.

A TSMC spokesperson reportedly responded to Nikkei Asia that does not rule out “any possibility” about a possible investment in Europe.