Europe Advances in Semiconductor Race: President Macron Seeks TSMC and Samsung to Establish Advanced Chip Manufacturing Facilities

Following the United States’ aggressive efforts to enhance its chip manufacturing capabilities, Europe is gearing up for similar initiatives. French President Emmanuel Macron is particularly focused on attracting tech giants like TSMC and Samsung to establish cutting-edge semiconductor production facilities within France.

President Macron Advocates for Domestic Semiconductor Production to Ensure Supply Security

As the global semiconductor landscape continues to transform, nations are increasingly prioritizing local chip production. This trend was notably initiated during President Trump’s administration, which positioned chip manufacturing as a national security priority and subsequently attracted significant investments from companies like TSMC. During the recent VivaTech conference, President Macron articulated the urgent need for France to develop its own supply of advanced semiconductors, emphasizing that achieving self-sufficiency has become imperative.

During a panel discussion, Macron underscored the critical role that semiconductors play in the global economy. He expressed a strong desire to establish production capabilities for cutting-edge nodes ranging from 2nm to 10nm. However, given France’s existing resources, it is probable that a foreign partner will need to assist in setting up these facilities. Macron’s strategy hinges on persuading industry leaders such as TSMC and Samsung to invest in the French market, highlighting Europe’s commitment to reducing reliance on external chip sources while raising questions about the practicality of these efforts.

TSMC 2nm yields are now well above 60 percent claims analyst

Prior to this, Europe harbored high expectations for access to advanced chips with TSMC’s announcement of a substantial project in Germany, which was supported by government funding. However, concerns about the timeline for operationalizing TSMC’s German facility have begun to emerge. Additionally, many European countries, including France, have been primarily focused on mature fabrication nodes, such as 16nm, which cater especially to the automotive sector. As a result, the likelihood of TSMC and Samsung establishing fabrication plants in France appears diminished.

Nonetheless, as the global dynamics shift production capabilities from East to West, it is vital for Europe to cultivate a reliable source of semiconductors. Relying on American imports may lead to higher costs due to potential tariffs. Additionally, without indigenous production, there is a risk that countries like China could gain influence by becoming a primary chip supplier to the region, further complicating Europe’s aspirations for independence in semiconductor production.

Source & Images