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Taiwan Semiconductor Manufacturing Co (TSMC) stated on Wednesday that it has no definite intentions to build chip factories in Europe, despite the European Union’s attempts to encourage Taiwanese companies to do so.

Due to the global scarcity of semiconductors affecting numerous industries, Taiwan and the EU conducted high-level trade discussions last week, with chip collaboration high on the agenda.

In February, the EU introduced the European Chips Act, naming Taiwan as one of the “like-minded partners” with whom Europe would like to collaborate.

Europe is still under evaluation, though

TSMC, the world’s largest contract chipmaker, and Asia’s most valuable listed business, said a year ago that it was in the early stages of considering a prospective expansion into Germany. Still, no significant progress has been made since then.

At the annual shareholders’ meeting, Chairman Mark Liu said that the company has fewer consumers in Europe but is still evaluating and has no definite plans.

To further ease the worldwide chip shortage, TSMC is investing $12 billion in semiconductor manufacturing in the United States and is constructing a facility in Japan with Sony Group.

Challenges remain in the US

According to Liu, the company’s expansion expenditures in the United States are higher than expected. Finding enough employees to construct the facilities has already proven difficult.

The United States is experiencing the tightest labor market in decades. Arizona, where TSMC’s new fabrication factory is located, and summer temperatures average 38 degrees Celsius, has historically struggled to find enough construction workers. However, he said the company is confident it can handle the challenge. 

As a result of the chip scarcity, TSMC forecasts revenue growth of roughly 30% this year, which is higher than an earlier prediction, as order books are full and prices are high.

Also read: EU should pay Intel 8 billion euros for two chip factories