Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to open its first European chip design centre in Munich, Germany, as part of a broader effort to expand its presence in the automotive and industrial sectors.
The announcement, made on May 27, 2025, comes amid growing global demand for semiconductors and Europe’s push to strengthen its domestic chip capabilities. The new design centre will focus on automotive and industrial chip development, supporting both European and global clients.
Strategic Investment in Germany
The Munich-based centre will be part of TSMC’s European Semiconductor Manufacturing Company (ESMC) venture, which includes planned fabrication facilities. The chip design centre will allow TSMC to work more closely with European clients on custom silicon solutions, particularly for the automotive sector, which is heavily concentrated in Germany.
“This investment marks another step forward in our commitment to support our customers with closer collaboration and advanced technology,” TSMC said in a statement.
Supporting the Automotive Sector
Germany, home to major automakers such as Volkswagen, BMW, and Mercedes-Benz, has faced significant supply chain disruptions due to the global chip shortage. TSMC’s new design centre aims to address these supply issues, offering more efficient development cycles and better integration between chip manufacturers and vehicle designers.
The company said its Munich facility would develop reference designs and help customers adapt TSMC technologies to automotive-grade requirements, including energy efficiency, durability, and reliability.
Europe’s Semiconductor Push
The move aligns with the European Union’s “Chips Act”, a €43 billion initiative aimed at boosting local semiconductor production and reducing dependency on Asia and the United States.
TSMC is one of several major chipmakers investing in Europe. Intel and GlobalFoundries have also announced multibillion-euro plans to establish fabs and R&D hubs in Germany and France.
No Timeline Yet for Full Operations
TSMC has not provided a specific timeline for when the Munich design centre will become fully operational but indicated that recruitment and infrastructure planning are already underway. The company said it will collaborate with local universities and engineering institutes to build a skilled semiconductor workforce in Euro
The investment highlights TSMC’s strategy to globalize its operations, strengthen ties with key markets, and play a leading role in the next generation of automotive and industrial electronics.
Source; Reuters
