Taiwan Semiconductor Manufacturing Company partners with European tech leaders to establish advanced chip facility in Germany

Taiwan Semiconductor Manufacturing Company (TSMC) is collaborating with European tech firms to establish a chip facility in Germany.

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Taiwan’s chipmaker TSMC recently invested €3.5 billion (RM17.6 billion) in Germany, and Taiwan’s economy minister sees this as an opportunity to strengthen ties between Taiwan and Europe. In the midst of increasing pressure from China regarding its sovereignty, Taiwan views this investment as a gesture of goodwill towards Europe. Despite not yet securing a Bilateral Investment Agreement (BIA) with the European Union, Taiwan hopes that TSMC’s investment will pave the way for closer cooperation between Taiwan and the EU.

Taiwan’s Foreign Ministry spokeswoman Joanne Ou emphasized that TSMC’s expansion into Europe will enhance bilateral relations with the US, similar to the ’21st Century’ trade initiative and double tax avoidance. Taiwanese officials have urged European countries to strengthen their ties with Taiwan to maintain semiconductor cooperation. Taiwan has called for progress on a Bilateral Investment Agreement with the European Union, but no talks have been held. Approval from Taiwan’s economy ministry is required for TSMC’s investment in Germany, which will focus on less advanced chips for the auto industry. TSMC’s advanced manufacturing and research will remain based in Taiwan as part of a global trend to strengthen supply chains and resilience.