According to TSMC, the new facility will be used to optimise chip designs for emerging applications in automotive, industrial applications, artificial intelligence (AI), telecommunications and IoT, as well as to cultivate and expand expertise in automotive and non-volatile memory across the EU, focusing on advancing rapidly growing RRAM and MRAM innovations, while supporting the industry to move beyond eFlash technology.
The new facility will be located in Munich and is scheduled to be opened in Q3 2025.
The hub will add to TSMC’s global network of nine design centres that currently span Taiwan, China, Japan, Canada and the US and may eventually support the development of chips using advanced manufacturing technologies for AI.
Reports suggest that this decision marks a strategic shift for TSMC, which has traditionally concentrated on chip manufacturing and the decision may have been driven by a shortage of advanced design expertise in Europe and the need to closely support customers in maximising the value of the wafer fab TSMC is constructing in Germany.
TSMC is currently partnering with Infineon, NXP, and Robert Bosch to build a €10 billion semiconductor manufacturing facility in Dresden, Germany, through a joint venture known as European Semiconductor Manufacturing Co. (ESMC) - volume production is targeted by the end of 2027.
TSMC’s expansion in Europe aligns with developments in automotive semiconductor technology, with the rapid development of smart vehicles helping to accelerate demand for high-performance automotive chips, with MCUs progressing from mature 40nm nodes to 16nm process technologies.
