Chip Talk > TSMC's Strategic Expansion: A New R&D Hub in Germany
Published May 29, 2025
Taiwan Semiconductor Manufacturing Co (TSMC), the global leader in contract chip production, is setting its sights on Europe with the announcement of a new research and development (R&D) hub in Munich, Germany. This strategic move aims to support their European customers in designing cutting-edge, high-performance chips tailored to specific industries, including automotive, industrial, artificial intelligence, and the burgeoning Internet-of-Things (IoT) sector. Read more about TSMC's announcement.
This center will be TSMC's first foray into European R&D for chip design, offering tailored solutions for high-density, energy-efficient chips. With a focus on major European sectors, TSMC aims to bolster the local automotive and industrial markets, which are rapidly growing and increasingly reliant on advanced semiconductor solutions.
According to TSMC's Europe president, Paul de Bot, the Munich center will equip European designers with critical resources to innovate and keep pace with global advancements in chip technology.
The establishment of this R&D hub is complemented by TSMC's ongoing efforts in Europe, notably their collaboration in the European Semiconductor Manufacturing Co (ESMC). This joint venture, alongside major players such as Robert Bosch GmbH and Infineon Technologies AG, includes the construction of a state-of-the-art chip manufacturing facility in Dresden, Germany.
Set to produce 12-inch wafers using TSMC's 28-nanometer and 22-nanometer processes, this fab will meet the increasing demand from Europe's automotive and industrial sectors. With an investment exceeding 10 billion euros, and additional EU funding, this project signifies a substantial commitment to enhancing Europe's semiconductor capabilities.
TSMC's expansion into Germany underscores a broader trend of diversifying semiconductor manufacturing and R&D activities across the globe. By establishing a presence in Europe, TSMC not only solidifies its role as a critical player in global supply chains but also aligns with regional shifts aiming for technological independence and resilience amid geopolitical uncertainties.
As TSMC continues to expand its global footprint, the focus on Europe is undoubtedly strategic. This initiative will provide European companies with the tools and resources required to innovate at a global scale. The Munich R&D center is expected to open in the coming quarter, heralding a new era of collaboration and technological growth.
TSMC's ambitious projects are a testament to the company's commitment to staying at the forefront of semiconductor technology, while simultaneously supporting regional industries in achieving their technological goals. With these advancements, TSMC is poised to lead in the new age of integrated, smart solutions designed for an interconnected world.
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