TSMC has been accelerating its global expansion. According to a report from Commercial Times, citing Reuters, TSMC plans to establish a chip design center in Munich, Germany, which is expected to officially launch in the third quarter of 2025. As Commercial Times highlights, this will be TSMCs first design hub of its kind in Europe.
www.trendforce.com, May. 28, 2025 –
eeNews Europe indicates that this marks a strategic shift for TSMC, which has traditionally concentrated on chip manufacturing. However, the decision may have been driven by a shortage of advanced design expertise in Europe and the need to closely support customers in maximizing the value of the wafer fab TSMC is constructing in Dresden.
The hub will add to TSMC’s global network of nine design centers spanning Taiwan, China, Japan, Canada and the U.S., as Wall Street Journal points out.
As noted by Reuters, the design center may eventually support the development of chips using advanced manufacturing technologies for AI. According to Paul de Bot, President of TSMC Europe, the center aims to support European clients in designing high-performance chips, with a focus on the automotive and industrial sectors, as well as AI, as cited by Reuters.
TSMC’s German Chip Footprint: ESMC Joint Venture
Reuters indicates that TSMC is partnering with Infineon, NXP, and Robert Bosch to build a €10 billion (USD 11.33 billion) semiconductor manufacturing facility in Dresden, Germany, through a joint venture known as European Semiconductor Manufacturing Co. (ESMC).
As noted by Commercial Times, construction of the ESMC fab began in 2024, with completion and volume production targeted by the end of 2027.
Supply chain sources cited by Commercial Times indicate that ESMC will initially focus on mature 28nm and 22nm process technologies, though future expansion to support more advanced nodes is not ruled out.
Meanwhile, TSMC’s expansion in Europe aligns with the advancement of automotive semiconductor technology, as noted by Commercial Times. Citing industry sources, the report highlights that the rise of smart vehicles is accelerating demand for high-performance automotive chips, with MCUs progressing from mature 40nm nodes to 16nm process technologies.