TSMC (TSM.US) denies European expansion plans

According to media reports citing a senior official from Taiwan, TSMC (TSM.US) plans to build more factories in Europe, focusing on the market for artificial intelligence chips. However, the report was denied by TSMC's official. The company said in an email statement: "There may be some misunderstanding, TSMC still focuses on our current global expansion projects, and currently has no new investment plans." Taiwan's "Ministry of Science and Technology" Minister Wu Chien-cheng did not reveal the timetable for the company's further expansion in Europe. TSMC said it still focuses on its current global expansion projects and currently has no new investment plans. Wu Chien-cheng said the AI market, including Nvidia (NVDA.US) and AMD (AMD.US) chips, would be the most important segment, and other semiconductor companies with alternative designs could also provide opportunities for TSMC. "Maybe they can also work in the European market, so TSMC is looking for that to plan their next few fabs," Wu Chien-cheng added, pointing out that TSMC would need to review whether it needs to expand in Dresden, Germany, or build in other parts of the EU. Wu Chien-cheng added that he also hopes to promote joint research and development projects between the academic communities in Taiwan and the Czech Republic. The Taiwanese chipmaker has already invested billions of dollars in new factories in the United States, Japan and Germany. In August this year, the European Commission said it had approved Germany's provision of 5 billion euros (US$5.5 billion) in state aid to support European Semiconductor Manufacturing Company (ESMC) in building and operating a new microchip manufacturing plant in Dresden. ESMC is a joint venture between TSMC, Bosch, NXP Semiconductors (NXPI.US) and Infineon Technologies (IFNNY.US). Earlier, TSMC said the total investment was expected to exceed 10 billion euros (US$11 billion), including equity injections, borrowing and help from the EU and the German government. The plant will be operated by TSMC. In addition, Wu Chien-cheng said he expects that regardless of who wins the US presidential election in November, Taiwan's chip companies will face additional pressure to expand in the United States. Wu Chien-cheng added: "But from a long-term perspective, I think it may be good for them, because they can improve themselves." So far, TSMC has committed to invest over US$65 billion in three facilities in Arizona.