Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to build a $12 billion advanced packaging facility in Munich, Germany. The project is backed by subsidies from the European Chips Act and will begin construction next year.
The facility will focus on CoWoS (Chip-on-Wafer-on-Substrate) packaging. As chip sizes shrink, placing different components close together in a single package is key to boosting processing speed and reducing power draw for AI and automotive systems.
Securing European Semiconductor Hubs
European car manufacturers and industrial tech companies have pushed for local advanced packaging. While Europe has chip fabrication plants, most packaging has stayed in Asia, creating supply chain vulnerabilities.
"Packaging is the bottleneck for next-generation silicon," says business analyst Ananya Krishnan. "Building this plant in Munich allows European firms to source, build, and package high-performance chips without shipping them across the world."
The plant is expected to create 2,500 high-tech jobs and start operations by late 2028.
