Taiwan Semiconductor Manufacturing Company (TSMC) said on Wednesday it has no immediate plans to build chip factories in Europe, as customers in the region are far fewer than in other parts of the world.
TSMC, the world’s largest semiconductor contract manufacturer, is exploring expansion in various regions, with the key factor being customer need, chairman Mark Liu told the company’s annual shareholder meeting.
The chipmaker also reaffirmed its revenue forecast of 30% or more in full-year growth.
Demand for high-end processors has helped the world’s largest contract chipmaker defy risks posed by Russia’s invasion of Ukraine and severe lockdowns in China.
The European Union has been courting Taiwan, a major semiconductor producer, to build plants in the bloc, and senior officials from both sides discussed chip cooperation last week.
In February, the EU unveiled the European Chips Act, with the bloc mentioning Taiwan as one of the “like-minded partners” Europe would like to work with.
TSMC, Asia’s most valuable listed company, is spending $12 billion on chip factories in the US, and is building a factory with Sony Group in Japan.
That is part of a global push to tackle a shortage of chips which has particularly affected the automotive industry.
TSMC said in April it expects chip capacity to remain very tight this year, amid the global crunch that has kept order books full and allowed chipmakers to charge premium prices.
Liu said the utilisation of TSMC’s plants remains “very full” this year, and that current high global inflation has no direct impact on the chip industry.
- Reuters with additional editing by Jim Pollard