TSMC Expands European Footprint with New Chip Design Center in Munich

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, is significantly expanding its European operations with the establishment of a new chip design center in Munich, Germany, set to open in the third quarter of 2025. This initiative complements TSMC's ongoing project in Dresden, where it is collaborating with European partners to build a semiconductor manufacturing facility.

Paul de Bot, President of TSMC Europe, announced the Munich Design Center during the company's 2025 Technology Symposium on May 27, 2025. He stated that the center aims to "support European customers in designing high-density, high-performance, and energy-efficient chips with a focus on applications in automotive, industrial, AI, and IoT." (reuters.com)

The Munich facility is part of TSMC's broader strategy to strengthen its presence in Europe, particularly in sectors where the demand for advanced semiconductors is rapidly growing. By providing local design support, TSMC intends to enhance collaboration with European clients and streamline the development of specialized chips tailored to regional needs.

In addition to the Munich Design Center, TSMC is advancing its European footprint through the European Semiconductor Manufacturing Company (ESMC), a joint venture with Bosch, Infineon Technologies, and NXP Semiconductors. The ESMC is constructing a semiconductor fabrication plant in Dresden, Germany, with a total investment exceeding €10 billion. TSMC holds a 70% stake in the venture, while each of the European partners holds a 10% stake. (pr.tsmc.com)

The Dresden facility is expected to have a monthly production capacity of 40,000 300mm wafers, utilizing TSMC's 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technologies. Construction began in the second half of 2024, with production targeted to commence by the end of 2027. The plant will focus on producing chips for the automotive and industrial sectors, addressing the growing demand for semiconductors in these industries. (pr.tsmc.com)

The European Commission has approved €5 billion in state aid for the Dresden facility, aligning with the European Chips Act's objective to bolster Europe's semiconductor industry and reduce dependency on external sources. European Commission President Ursula von der Leyen emphasized the project's significance, stating, "The world's largest chipmaker is coming to our continent and joining forces with three European champions." (dw.com)

German Chancellor Olaf Scholz also highlighted the importance of the Dresden plant, noting that semiconductors are essential for Germany’s industrial future and climate objectives. He advocated for increased domestic production to lessen European reliance on global supply chains. (reuters.com)

The establishment of both the Munich Design Center and the Dresden manufacturing facility is expected to create approximately 2,000 direct high-tech professional jobs, with additional indirect employment opportunities throughout the European semiconductor supply chain. These initiatives are poised to enhance Europe's semiconductor manufacturing capabilities, particularly in sectors critical to the region's economy, such as automotive and industrial applications. (pr.tsmc.com)

By establishing local design and manufacturing facilities, TSMC and its partners aim to mitigate supply chain disruptions and reduce reliance on semiconductor imports. The projects are anticipated to generate significant employment opportunities and stimulate economic growth within the region.

TSMC's establishment of the Munich Design Center and the Dresden manufacturing facility marks a significant expansion of its European operations. These strategic investments underscore TSMC's commitment to supporting regional technological advancements, enhancing supply chain resilience, and contributing to economic growth across Europe.