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TSMC Advances European Expansion with Munich Design Hub and Dresden Fab Construction

The Munich center will enhance design support for European clients following strong Q1 results driven by AI chip demand.

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Overview

  • TSMC plans to open its first European chip design center in Munich in Q3 2025 to help local and regional partners optimize high-performance, energy-efficient chips for automotive, industrial and AI applications.
  • The Munich facility will be TSMC’s tenth global design hub and is designed to integrate design technology co-optimization directly with on-site manufacturing capabilities.
  • Work is underway on a €10 billion Dresden semiconductor plant built in partnership with Infineon, Bosch and NXP that will initially produce 22-nanometer automotive microcontroller units with scope for future node upgrades.
  • TSMC reported Q1 2025 net sales of $25.53 billion, a 41.6% increase year-over-year, and forecasts Q2 revenue of $28.4 billion to $29.2 billion, reflecting robust demand for AI chips.
  • The company’s European investments aim to reduce exposure to global tariff uncertainties and strengthen support for local chip developers and industrial clients.