INSUBCONTINENT EXCLUSIVE:
(Analysis) Taiwan Semiconductor Manufacturing Company (TSMC) has set its sights on Europe for significant expansion
in the growing market for artificial intelligence (AI) chips
first European factory in Dresden, Germany
focus on producing chips for automotive and industrial applications
It will use 28nm, 22nm, and 16/12nm process technologies.The facility is expected to start production by the end of 2027
Strategic Move in the Global Chip Race
already planning several more fabs in Europe
This approach helps mitigate risks associated with geopolitical tensions, particularly between China and Taiwan.TSMC is also investing
heavily in new facilities in the United States and Japan
has driven its recent financial success
In the third quarter of 2024, TSMC reported revenue of $23.5 billion, exceeding market expectations.In addition, the European semiconductor
market presents significant opportunities for TSMC
The company is evaluating whether to expand further in Dresden or build in other parts of the EU.This decision will depend on various
factors, including government incentives and market demand
navigate complex geopolitical issues and address concerns about relocating core production from Taiwan
Competition from other chipmakers and countries investing in semiconductor manufacturing adds to these challenges.Despite these hurdles,
It positions the company to capitalize on the growing demand for AI chips and other advanced semiconductors.This expansion also aligns with
efforts by various governments to boost domestic chip production
likely influence market dynamics, technological innovation, and geopolitical strategies in the coming years
