TSMC Expands AI Chip Manufacturing in Europe

Taiwan Semiconductor Manufacturing Company (TSMC) is significantly expanding its manufacturing capabilities in Europe, focusing on AI chips for major companies like Nvidia and AMD. The company has commenced construction of its first European fab in Dresden, Germany, with a €10 billion investment, half of which is subsidized by the German government. Production at this facility is expected to start by the end of 2027, and TSMC is also evaluating plans for additional plants across Europe. This expansion aligns with TSMC's strategy to diversify its production sites globally, especially in response to rising tensions with China. The move could provide new opportunities for European chip designers and enhance collaboration with local firms. TSMC is concurrently investing heavily in production facilities in the U.S., further solidifying its global footprint.