Taiwan's TSMC says will not build chip factory in Europe

Robert Besser
12 Jun 2022, 14:48 GMT+10

Amidst efforts by the European Union to encourage Taiwanese firms to manufacture computer chips in Europe, TSMC said it has no plans to build factories in Europe
Amidst the ongoing global semiconductor shortage, Taiwan and the EU held high level trade talks last week, with cooperation on manufacturing chips at the top of the agenda
The European Chips Act announced in February mentioned Taiwan as one of the "like-minded partners" Europe aims to work with

TAIPEI, Taiwan: Amidst efforts by the European Union to encourage Taiwanese firms to manufacture computer chips in Europe, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) said it has no plans to build factories in Europe.

Amidst the ongoing global semiconductor shortage, Taiwan and the EU held high level trade talks last week, with cooperation on manufacturing chips at the top of the agenda.

The European Chips Act announced in February mentioned Taiwan as one of the "like-minded partners" Europe aims to work with.

Last year, TSMC, the world's largest contract chipmaker and Asia's most valuable listed company, said it was in the early stages of reviewing a potential expansion into Germany, but observers say no progress has been made.

"In Europe, we have relatively fewer customers, but we are still assessing and still do not have any concrete plans," said Chairman Mark Liu during the company's annual shareholder's meeting.

In the U.S., TSMC is spending $12 billion on constructing chip factories, while in Japan it is building a factory with Sony Group to help ease the global chip shortage.

According to Liu, the company was seeing higher costs for its U.S. expansion than estimated, stressing, "But we can handle it."

As the chip shortage keeps order books full and prices high, TSMC also predicted a revenue growth of some 30 percent this year, at the higher end of an earlier forecast.

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