TSMC Invests 10 Billion Euros in Germany, Extending Taiwan’s Semiconductor Reach to Europe, with Czech Republic and Poland Joining Forces to Form the European Chip Triangle
Taiwan Semiconductor Manufacturing Company (TSMC) has invested 10 billion euros to establish a factory in Germany, marking Taiwan’s semiconductor prowess extending into Europe. The Czech Republic and Poland, neighboring Germany, are eager to connect with TSMC’s German plant, aiming to create a European semiconductor “triangle.” These two countries, having undergone Soviet communist rule in the past, share a common historical background. Now, they have turned their focus to semiconductor development, striving to ride the wave of AI advancements.
In December 2024, during the chilly winter, Minister of Economic Affairs Wang Mei-hua traveled across most of the globe to Europe. After inspecting TSMC’s German plant, she swiftly arrived in the Czech Republic to unveil the Taiwan Trade and Investment Center in Prague. The Ministry of Economic Affairs (MOEA) is positioning TSMC’s German plant as the hub for expanding Taiwan’s services in Europe, with the Czech Republic being the first station, marking an early move to stake out a strategic position in the Central and Eastern European semiconductor triangle.
Regarding Taiwan’s official service center’s first presence in Europe, Wang Mei-hua stated that the center would expand to include AI, ICT, and other fields in the future. The center will not only support the semiconductor supply chain in Dresden, Germany but also assist Taiwanese companies in developing the ICT industry in Poland. Moreover, it will provide one-stop services for Taiwanese companies investing in Central and Eastern Europe or other EU member states.
Europe, being far from Asia, has not traditionally been a popular investment location for Taiwanese companies. However, the situation has changed with TSMC’s investment in Germany, which has triggered a shift in the global semiconductor supply chain layout. This trend is now driving the formation of the European Chip Triangle. In addition to Germany, where TSMC is based, neighboring countries such as the Czech Republic and Poland have shown strong ambitions to join the semiconductor manufacturing sector. The Czech Republic, in particular, has seen frequent visits from government and industry delegations between Taipei and Prague, resulting in closer political, economic, and industrial exchanges than ever before.
The Ministry of Economic Affairs, the guardian of Taiwanese industry, has also initiated preparatory operations. Minister Wang, with her private-sector background, is actively assisting Taiwanese companies in globalizing their supply chains. Her trip to Europe, in addition to official meetings with the EU headquarters, followed Taiwan’s footprint in the European semiconductor supply chain. After visiting TSMC’s German ESMC plant, she and her team crossed the border to the industrial zone in Usti, northern Czech Republic. Usti is less than an hour’s drive from Dresden. According to officials accompanying Wang, the Usti industrial zone was initially developed in the 1980s to support the automotive and machinery industries, which means the facilities are older. The plan is to work closely with the Czech Republic to assess the investment needs of manufacturers and gradually move forward with development.
However, officials from the Ministry of Economic Affairs admitted that while Usti has a geographical advantage due to its proximity to Dresden, the second-largest city in the Czech Republic, Brno, located in the southeastern part of the country, has already attracted Taiwanese electronics manufacturing service (EMS) companies such as Inventec, Wistron, and Pegatron. Furthermore, Brno’s university-town atmosphere and the existing industrial cluster effect make it more attractive for Taiwanese companies to set up operations there.
