Taiwan Semiconductor denies expansion plans in Europe

According to the financial news app Zhitong Finance, citing a senior official from Taiwan, China, Taiwan Semiconductor (TSM.US) plans to establish more factories in Europe, focusing on the artificial intelligence chip market. However, this report has been denied by the official statement from Taiwan Semiconductor. In an email statement, the company said, "There may be some misunderstandings, Taiwan Semiconductor remains focused on our current global expansion projects and currently has no new investment plans." Director-General of the "Science and Technology Committee" in Taiwan, Wu Chengwen, did not disclose a timetable for the company's further expansion in Europe. Taiwan Semiconductor pointed out that the company is still focused on its current global expansion projects and currently has no new investment plans. Wu Chengwen stated that the artificial intelligence market, including chips from companies like NVIDIA (NVDA.US) and AMD (AMD.US), will be the most important segment, and other semiconductor companies with alternative designs may also provide opportunities for Taiwan Semiconductor. "Perhaps they can also work in the European market, so Taiwan Semiconductor is looking for this to plan their next few fabs," Wu Chengwen added, pointing out that Taiwan Semiconductor will need to review whether it needs to expand in the German city of Dresden or build in other regions of the European Union. Wu Chengwen added that he also hopes to promote joint research and development projects between academia in Taiwan, China, and the Czech Republic. It is understood that this Taiwanese chip manufacturer has already invested billions of dollars in establishing new factories in the United States, Japan, and Germany. In August of this year, the European Commission announced that it had approved Germany's provision of 5 billion euros (approximately $5.5 billion) in state aid to support the construction and operation of a new microchip manufacturing plant in Dresden by the European Semiconductor Manufacturing Company (ESMC). ESMC is a joint venture of Taiwan Semiconductor, Bosch, NXP Semiconductors (NXPI.US), and Infineon Technologies (IFNNY.US). Previously, Taiwan Semiconductor had indicated that the total investment is expected to exceed 10 billion euros (approximately $11 billion), including equity injections, borrowing, and assistance from the European Union and the German government. The factory will be operated by Taiwan Semiconductor. In addition, Wu Chengwen stated that he expects that regardless of who wins the U.S. presidential election in November, Taiwanese chip companies will face additional pressure to expand in the United States. Wu Chengwen added, "But in the long run, in my opinion, this may be a good thing for them because they can improve themselves." So far, Taiwan Semiconductor has committed to investing over $65 billion to establish three facilities in Arizona