Taiwan Semiconductor Manufacturing Company (TSMC) will launch its first TSMC European chip center in Munich, Germany, by Q3 2025. This strategic move marks a key step in Europe’s push for semiconductor independence and leadership in AI, automotive, and industrial automation. Located in Germany’s innovation hub, the Munich center will provide advanced design support and work closely with TSMC’s Dresden fabrication plant. The expansion responds to rising demand for localized chip capabilities and aligns with Europe’s vision for next-generation semiconductor development and sovereignty.
TSMC European Chip Center to Strengthen EU Innovation
According to The South China Morning Post, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract semiconductor producer, has announced plans to establish a cutting-edge design centre in Munich, Germany. Scheduled to open in the third quarter of 2025, the TSMC European chip center will enhance Europe’s semiconductor ecosystem, particularly in artificial intelligence (AI), automotive, industrial, and Internet of Things (IoT) applications.
Paul de Bot, President of TSMC Europe, announced the venture at the company’s 2025 Technology Symposium, emphasising that the Munich facility will assist European companies in developing high-performance, energy-efficient, and compact chip designs for next-generation applications. He said in a statement that,
It’s intended to support European customers in designing high-density, high-performance and energy-efficient chips with a focus on applications again in automotive, industrial, AI, and [Internet-of-Things].
This facility will deliver advanced manufacturing technologies previously unavailable in Europe, boosting the continent’s chip production capabilities and technological autonomy. During a media briefing, TSMC executive Kevin Zhang confirmed that the Munich design centre and the ESMC project could contribute to Europe’s ambition to become a key player in AI chip production. Zhang said in a press briefing that,
I’m all for building up the most semiconductor capability in Europe for AI applications … This design centre obviously potentially can be leveraged to bring the leading node support… We have to be on the ground right here, closer. We need to have people here to really directly engage with customers.
Aligning with Europe’s AI Ambitions
The announcement aligns with the European Union’s broader push to close the technological gap with global leaders such as the United States and China in AI and semiconductor manufacturing. Additionally, as part of this effort, TSMC is also participating in a €10 billion joint venture alongside Infineon, NXP Semiconductors, and Robert Bosch to construct a new microchip fabrication plant in Dresden.
This facility, operated by the European Semiconductor Manufacturing Company (ESMC), is set to produce chips employing smaller node technology, which European manufacturers like as STMicroelectronics, Infineon, and NXP have so far lacked. The relocation also brings TSMC closer to one of its most important customers, Apple, which just invested €2 billion to build its largest European engineering centre in Munich. By establishing operations in Munich and Dresden, TSMC and its partners hope to change Europe’s semiconductor sector.
Conclusion
TSMC’s decision to open its first European chip design center in Munich strengthens Europe’s push for a resilient semiconductor industry. By aligning with the EU’s long-term vision, TSMC supports rising demand for advanced chips in the automotive, AI, and industrial automation sectors. This move positions TSMC as a vital partner and committed investor in Europe’s technological and economic development. As Europe advances digital and sustainability goals, the Munich Center will help boost the region’s global competitiveness in semiconductors and AI.
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