In March, we shared information about who the world’s largest 11 chip manufacturers are and what their focuses are. At this point, the world’s largest chip manufacturer, TSMC, has made headlines with a new announcement. The company stated that it plans to invest billions of dollars to build new factories in the United States, Japan, and Germany.
We can say that TSMC’s move is driven by the increasing demand for strong components and the need to mitigate risks stemming from geopolitical tensions with China. The company is expected to start operations at its $10.9 billion chip factory being built in Dresden, Germany, by the end of 2027. This project is being financed with approximately 50% support from the government.
Wu Cheng-wen, the Minister of Taiwan’s National Science and Technology Council, emphasized opportunities for closer cooperation with the European Union and highlighted the potential for collaboration with next-generation chip designers like Germany’s Black Semiconductor and the Netherlands’ Axelera AI. However, it is anticipated that U.S. pressure will continue in the coming years.
It wouldn’t be incorrect to note that these moves may increase costs for Taiwanese companies in the short term, but they could be beneficial for their long-term development. Additionally, strengthening relations between Taiwan and the Czech Republic may open new doors for TSMC in the European market.
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
