TSMC's Global Expansion: Europe and Taiwan Plants Boost Market Share

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading contract chipmaker, plans to build more chip plants in Europe and Taiwan, as revealed by a company official. This strategic move aligns with TSMC's global expansion strategy and is influenced by various factors, including Europe's Chips Act and geopolitical tensions.

Europe's Chips Act, along with other incentives, plays a significant role in TSMC's decision to expand in the region. The EU's commitment to invest €47 billion to increase its share of global chip production to 20% by 2030 is a compelling reason for TSMC to establish a presence in Europe. The EU Chips Act aims to attract advanced technologies, making it an attractive destination for TSMC's investment.

Geopolitical tensions, particularly with China, also influence TSMC's global expansion strategy. The company is diversifying its production from Taiwan to mitigate potential disruptions in the supply chain. TSMC's new plants in Europe and Taiwan will contribute to its global market share and competitiveness by increasing production capacity and reducing reliance on a single location.

TSMC's new plants in Europe and Taiwan are expected to contribute to meeting future demand for high-performance computing devices, smartphones, and automotive platform solutions. The company plans to build seven new plants in 2024, including three wafer plants and two packaging factories in Taiwan, as well as two wafer plants overseas. This significant capacity increase will help TSMC maintain its market leadership and cater to the growing demand for advanced semiconductor chips.

The new plants' output of high-performance computing devices, smartphones, and automotive platform solutions will contribute to meeting future demand. TSMC's specialty technology production is expected to grow at a significant rate, with the proportion of specialty technology relative to all mature processes increasing to 67% in 2024 from 61% in 2020.

TSMC's global expansion strategy presents both challenges and opportunities. Establishing new plants in Europe and Taiwan will help the company improve its supply chain resilience and reduce dependence on a single location. However, the company must navigate potential regulatory hurdles and ensure a skilled workforce to support its expansion.

In conclusion, TSMC's plans to build more chip plants in Europe and Taiwan are driven by Europe's Chips Act and geopolitical tensions. The new plants will contribute to TSMC's global market share and competitiveness, helping the company meet future demand and maintain its leadership in the semiconductor industry. Despite potential challenges, TSMC's global expansion strategy is poised to strengthen its position in the market and support its long-term growth.