TSMC will open a new design center in Munich in the third quarter of 2025, strengthening its footprint in Europe and supporting the region's push for greater semiconductor self-sufficiency. The announcement was made during TSMC's 2025 Technology Symposium in Amsterdam, where company executives emphasized the center's strategic role in serving European clients.
Kevin Zhang, TSMC's deputy Co-COO, told Bloomberg that having staff on-site is essential for working directly with customers. The Munich center will support the design of high-density, high-performance, and energy-efficient chips, complementing the new fabrication plant in Dresden.
The design hub will target automotive, industrial, AI, and IoT applications. "It's meant to help European customers create high-density, high-performance, and energy-efficient chips," Paul de Bot, President of TSMC Europe, told Reuters.
TSMC's move marks a win for the European Union, which has been striving to reduce dependence on Asian and US chipmakers. As reported by the Wall Street Journal, the Munich center adds to TSMC's global network of nine design centers and was chosen for its proximity to key European clients.
The center is expected to play a key role in TSMC's broader European strategy, particularly its EUR10 billion (approx. US$11.33 billion) joint venture with Infineon, NXP, and Robert Bosch in Dresden under the European Semiconductor Manufacturing Co. (ESMC). The design center could support advanced chip manufacturing processes—known as leading nodes—that are essential for AI applications.
Zhang expressed strong support for building up the most advanced semiconductor capability in Europe for AI applications, noting that the Munich facility could be leveraged for developing AI chips using cutting-edge process technologies.
The announcement comes as TSMC rides strong momentum from the global AI boom. The chipmaker, which manufactures processors for Apple and Nvidia, expects sales to grow in the mid-20% range this year, with revenue from AI-related servers and processors projected to double in 2025.
Meanwhile, demand in segments like electric vehicles and industrial equipment remains weak due to excess inventory, though some industry players anticipate a rebound. STMicroelectronics, a key European chipmaker, recently forecast improved revenue in the second quarter, signaling a potential recovery.
Article edited by Joseph Chen
