The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Company, is set to expand its operations in Europe, according to a Taiwanese official.
ADVERTISEMENTA leading maker of AI chips, Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning more plants in Europe.
Taiwan’s National Science and Technology Council Minister Wu Cheng-wen told Bloomberg TV: “They have started construction of the first fab (semiconductor fabrication plant) in Dresden, they are already planning the next few fabs in the future for different market sectors as well.”
However a spokesperson for TSMC told Euronews business that it could not confirm further European expansion plans but it remained focused on the company’s current global expansion projects.
The current projects include new factories in the US and one in Germany.
TSMC launched the construction of the new factory in Dresden in August 2024 in the presence of the European Commission president Ursula von der Leyen and the German Chancellor Olaf Scholz. The new semiconductor fabrication plant is the first in the EU.
Total investments are expected to exceed €10bn euros, however, the project was granted €5bn in subsidies.
It will be carried out in partnership with Bosch, Infineon and NXP “to meet the semiconductor needs of the rapidly growing European automotive and industrial sectors,” said TSMC Chairman & CEO C.C. Wei at the event.
40% jump in the profit on the way?
The chipmaker’s third-quarter profit is expected to jump 40% on strong demand for AI chips, according to an LSEG SmartEstimate of 22 analysts.
Last week, TSMC reported a strong 39.6% increase in revenue for September 2024, compared to the previous year.
The company is going to report its third-quarter profit on Thursday.
TSMC is expected to report net income of NT$298.2bn (€8.49bn) for the quarter ended 30 Sept, which compares with a net income of NT$211bn in the same period in 2023.
The world’s largest contract chipmaker, with customers including Apple and Nvidia, has benefited from the surging demand due to the rise in artificial intelligence. The share price of the Taipei-listed TSMC has gone from $91 to $191 in the last 12 months, and gained almost 80% since the beginning of 2024.
