TSMC expands in Europe with Munich Design Centre

[WORLD] Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, announced on Tuesday plans to open a new design centre in Munich, Germany. The facility, scheduled to open in the third quarter of this year, could eventually contribute to developing chips using advanced manufacturing processes for applications such as artificial intelligence (AI). The announcement was made by Paul de Bot, President of TSMC Europe, during the company’s 2025 Technology Symposium.

The move comes at a pivotal moment for the global semiconductor sector, as geopolitical uncertainties and ongoing supply chain challenges continue to shape the industry landscape. TSMC’s expansion into Germany is seen as a strategic effort to deepen its footprint in Europe and build a more resilient supply chain for its regional clients. The initiative also aligns with the European Union’s broader agenda to bolster semiconductor self-sufficiency and reduce dependence on Asian imports.

“The centre is designed to support European customers in creating high-density, high-performance, and energy-efficient chips, with a focus on automotive, industrial, AI, and Internet-of-Things (IoT) applications,” de Bot stated.

Germany’s robust automotive industry is expected to be a major beneficiary of the Munich Design Centre. As vehicles become increasingly electric and software-driven, the demand for sophisticated semiconductor solutions has soared. The centre is poised to play a critical role in helping European carmakers meet the evolving performance and safety standards of next-generation vehicles.

Beyond the automotive sector, the design centre will also concentrate on industrial applications and IoT technologies. With billions of connected devices projected to be in use by the end of the decade, TSMC’s capabilities in producing compact, power-efficient chips will be essential for driving innovation in the IoT space. This development is set to empower European firms to deliver smarter and more efficient connected products.

TSMC also intends for the Munich facility to serve as a collaborative hub. The company plans to engage with local universities, research institutions, and industry partners to cultivate a vibrant ecosystem for chip design and technological advancement. This approach aims to attract top-tier talent and spur breakthroughs in semiconductor innovation.

The growing importance of AI further underscores the need for specialized, high-performance chips. As AI workloads become more complex and data-intensive, TSMC’s focus on AI applications at the Munich centre aligns with the global momentum toward more powerful and efficient AI hardware solutions.

This new venture in Germany is part of TSMC’s wider global expansion strategy. The company continues to ramp up its investments in research, development, and production capacity to meet rising global demand for semiconductors. The Munich Design Centre is expected to reinforce TSMC’s leadership in advanced chip technology, both within Europe and worldwide.

As the centre nears its opening, industry observers remain optimistic about its long-term impact. It is anticipated to play a vital role in fostering innovation, supporting economic growth, and advancing next-generation technologies across the region. With TSMC’s commitment to European partnerships and technological progress, the outlook for the continent’s semiconductor sector appears increasingly bright.