Taiwan Semiconductor Manufacturing Company Limited (TSMC) – a Taiwanese company- is the world’s second-most valuable semiconductor company and the world’s largest dedicated independent (“pure-play”) semiconductor foundry.

TSMC has commenced construction of its first fabrication plant in Dresden, Germany, signifying the company’s entry into the European Union with a substantial investment of €10 billion (approximately $10.9 billion), half of which is covered by state subsidies. The facility is expected to begin production by the end of 2027.

The primary focus of TSMC’s European expansion will be on the growing demand for artificial intelligence (AI) chips, particularly for US-based companies like NVIDIA and AMD, as highlighted by Taiwan’s National Science and Technology Council Minister, Wu Cheng-wen, in a recent Bloomberg interview.

As TSMC continues to diversify its operations beyond Taiwan, it is already laying the groundwork for future projects. Although a specific timeline for additional European facilities has not been announced, Minister Wu mentioned that TSMC is exploring further growth opportunities across various market sectors in Europe. The decision to expand the Dresden plant or establish new facilities in other regions is still under consideration.