TSMC to offer chip design services in Munich
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Foundry TSMC will open a chip design center in Munich, Germany, Reuters quoted Paul de Bot, president of TSMC Europe, saying on Tuesday May 27.
This would represent a change of strategy by TSMC, which normally focuses only on chip manufacturing, but the move may have been prompted by a lack of leading-edge design expertise in Europe and the need to “hand-hold” customers to make the best use of a wafer fab TSMC is building in Dresden, Germany. That fab is due to come on-stream in 2027.
The TSMC executive was speaking at the opening of TSMC’s 2025 European Technology Symposium event held in Amsterdam, The Netherlands, and said the design center would open in 3Q25.
“It’s intended to support European customers in designing high-density, high-performance, and energy-efficient chips with a focus on applications in automotive, industrial, AI, and IoT,” Reuters quoted de Bot saying.
The design center will support TSMC’s €10 billion investment in European Semiconductor Manufacturing Co. (ESMC), the Dresden fab that will be operated by TSMC and owned 70 percent by TSMC with NXP, Infineon and Bosch each owning 10 percent. The fab is not intended to operate at the leading-edge initially but rather on chips for automotive and industrial applications made using 28/22nm and 16/12nm nodes.
However, European politicians and companies working on AI and high-performance computing chips would like to see ESMC quickly move to 6nm and 3nm to provide a domestic capability to produce more advanced chips.
TSMC does not usually engage in design services. In Taiwan a number of companies have sprung up around the foundry that are able to help fabless chip companies, or perform turnkey designs for TSMC’s customers. One example is Global Unichip Corp.
However similar service providers able to operate at close the leading-edge of semiconductor manufacturing do not exist in Europe. Expertise in late-stage physical design is often required at the leading-edge to maximize yield.
In addition, ESMC is expected to offer foundry access to small European companies and European universities, who would also likely lack leading-edge design expertise. A Munich hub will likely provide a focus for chip development and skills transfer.
TSMC’s expansion into design service will support European customers while providing more comprehensive design process and more rapid chip delivery.
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