Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, has announced plans to open a new chip design centre in Munich, Germany, by the third quarter of 2025. This strategic move underscores TSMC’s deepening commitment to the European semiconductor industry, particularly in high-growth sectors such as automotive electronics, industrial systems, artificial intelligence (AI), and the Internet of Things (IoT).

The announcement came during TSMC’s 2025 Technology Symposium, where Paul de Bot, President of TSMC Europe, provided key insights into the company’s roadmap for its expansion into the region. According to de Bot, the Munich Design Centre will play a crucial role in supporting European companies by providing expertise and infrastructure to develop high-density, high-performance, and energy-efficient chips tailored to meet the continent’s evolving industrial and technological demands.

Strengthening Europe’s Technological Sovereignty

The planned Munich Design Centre will serve as a major hub for advanced semiconductor development and innovation in Europe. Its launch is particularly timely, as the European Union continues to prioritize semiconductor independence through initiatives such as the EU Chips Act, which aims to double Europe’s share of the global semiconductor market to 20% by 2030.

By enhancing local design capabilities, TSMC’s Munich centre will allow European tech firms and automakers to collaborate more directly with the Taiwanese chip giant, helping them customize semiconductors to their specific needs. De Bot emphasized that the facility will not only focus on high-performance and low-power chips but will also cater specifically to the stringent requirements of the automotive and industrial sectors—two industries in which Europe has long held global leadership.

Munich Design Centre to Complement Dresden Manufacturing Plant

The upcoming Munich centre will complement TSMC’s existing European project—a major microchip manufacturing plant under construction in Dresden, Germany. This facility, known as the European Semiconductor Manufacturing Company (ESMC), is a collaborative venture between TSMC and three leading industry players: Infineon Technologies, NXP Semiconductors, and Robert Bosch GmbH.

The ESMC plant is designed to produce advanced automotive and industrial chips using mature 28/22nm and 16/12nm process technologies, which remain critical for the majority of automotive and embedded applications. Construction of the Dresden fab is expected to be completed by 2027, with production ramping up shortly thereafter.

Together, the Munich Design Centre and Dresden manufacturing facility will form the cornerstone of TSMC’s European operations, bringing advanced chip design and fabrication capabilities closer to major customers and partners in the region.

Targeting the Future of Automotive and AI Technology

The European automotive sector, which includes global giants such as BMW, Volkswagen, and Mercedes-Benz, has increasingly turned to semiconductors to power everything from electric drivetrains to autonomous driving systems. As vehicles become more software-defined and reliant on intelligent electronics, chip design complexity has surged.

TSMC’s decision to establish a chip design centre in Munich—home to numerous automotive and industrial tech companies—reflects its aim to become a central partner in this transformation. The centre will likely work closely with clients to develop system-on-chip (SoC) solutions, integrate AI capabilities, and optimize chip performance within constrained power budgets.

AI and IoT applications also stand to benefit. European manufacturers and developers working in sectors like smart cities, robotics, renewable energy systems, and factory automation will now have easier access to TSMC’s leading-edge design methodologies and technical support.

TSMC’s Global Expansion Strategy

TSMC’s move in Europe is part of a broader global strategy to diversify its manufacturing and design operations amid rising geopolitical and supply chain risks. Traditionally concentrated in Taiwan, TSMC has faced increasing pressure from governments and customers to establish manufacturing and R&D capabilities in other regions.

In addition to the new European initiatives, TSMC is also expanding its footprint in the United States and Japan. In Arizona, the company is building two fabs in partnership with the U.S. government and major customers such as Apple and NVIDIA. Meanwhile, in Japan, TSMC has partnered with Sony and Denso to launch a semiconductor plant that will cater to the local automotive and electronics industries.

These expansions not only reduce supply chain vulnerabilities but also strengthen customer engagement by bringing TSMC’s expertise closer to key markets. The Munich Design Centre, in particular, is expected to serve as a vital link between chip development and chip production within Europe, enhancing the region’s ability to innovate and commercialize new semiconductor technologies rapidly.

Europe’s Semiconductor Future: A Competitive Landscape

With major investments from Intel, GlobalFoundries, and now TSMC, Europe is quickly becoming a battleground for semiconductor supremacy. While the continent remains heavily reliant on imported chips—particularly advanced nodes—these new initiatives are designed to build local capabilities from the ground up.

The German government, backed by EU incentives, has welcomed these investments as part of its broader push to revitalize domestic semiconductor production. TSMC’s partnership with German firms Infineon and Bosch reflects a broader commitment to integrate into Europe’s industrial base rather than operate independently.

This collaborative approach not only helps in gaining regulatory and political support but also provides synergies that can accelerate innovation. European customers stand to benefit from reduced development cycles, improved customization, and lower total cost of ownership through local design support.

Conclusion

TSMC’s planned Munich Design Centre represents a pivotal step in the company’s global expansion strategy and a major milestone for Europe’s semiconductor ambitions. By establishing a strong design presence in Germany and complementing it with a state-of-the-art manufacturing plant in Dresden, TSMC is positioning itself as a long-term player in Europe’s tech ecosystem.

As the demand for intelligent, energy-efficient semiconductors continues to rise across industries—especially in electric vehicles, AI, and industrial automation—Europe’s partnership with TSMC could prove critical in securing technological leadership and resilience in the years ahead.