Taiwan Semiconductor Manufacturing Company (TSMC), a leader in semiconductor manufacturing and AI chip production, is planning to further expand its presence in Europe, according to Taiwan’s National Science and Technology Council Minister, Wu Cheng-wen. Speaking to Bloomberg TV, Wu confirmed that TSMC, which recently started construction on its first European fabrication plant in Dresden, Germany, is already planning additional facilities in the region.
Although a spokesperson for TSMC declined to confirm specifics of future European expansion, the company remains focused on its ongoing global projects, including new manufacturing plants in the US and Germany.
TSMC officially broke ground on the Dresden plant in August 2024, during a ceremony attended by European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz. The Dresden plant marks TSMC's first venture into the EU semiconductor market, with total investments expected to surpass €10 billion. The project has received €5 billion in subsidies and will be developed in collaboration with Bosch, Infineon, and NXP to address the semiconductor needs of Europe's rapidly expanding automotive and industrial sectors.
At the ceremony, TSMC Chairman and CEO C.C. Wei highlighted the significance of the project, stating, “This partnership will support Europe's growing demand for semiconductors, particularly in automotive and industrial markets, helping secure Europe’s technological future.”
Alongside its European expansion, TSMC continues to experience robust financial performance. The company is expected to report a 40% increase in third-quarter profit, driven by surging demand for AI chips. Analysts project TSMC's net income for the quarter ending September 30, 2024, to reach NT$298.2 billion (€8.49 billion), compared to NT$211 billion in the same period last year. In addition, TSMC reported a 39.6% increase in September 2024 revenue year-on-year, as AI-related technologies continue to boost demand.
TSMC's stock has reflected this growth, with its share price surging from $91 to $191 over the past 12 months, an almost 80% rise since the start of 2024.
As a critical supplier to major tech companies such as Apple and Nvidia, TSMC has been a beneficiary of the global rise in demand for AI technology. The planned expansion into Europe aligns with growing international competition in the semiconductor industry, with AI-driven applications playing a pivotal role in shaping future technological advancements.
With the launch of the Dresden plant and further European projects in the pipeline, TSMC is set to solidify its role in the global semiconductor supply chain while supporting Europe’s strategic focus on technological growth and innovation. The company is expected to announce its third-quarter financial results on Thursday, October 17, 2024, providing further insight into its performance during this period of significant expansion.
