Europe Makes Its Move in the Chip Race as France’s President Macron Now Hopes To Convince TSMC/Samsung To Set Up Cutting-Edge Facilities

After the US’s drive for chip production, Europe seems next, as France’s President is now eager to bring TSMC and Samsung into the country to acquire high-end nodes domestically.

France Needs To Come Up With Their Own Supply of Chips, Believes President Macron, Saying He is Eager To Work With TSMC

With the global supply chains evolving drastically, nations have shifted their focus specifically on catering to chip needs by producing them locally. This hype started with President Trump’s arrival, when he took chip production as a matter of national security, and brought in large-scale investments, notably from TSMC. Now, it seems like countries are following the steps of the US, as at the VivaTech conference, French President Emmanuel Macron expressed his intentions to develop a supply of cutting-edge semiconductors in the country, saying that it is becoming a necessity.

At a panel discussion, Macron specifically focused on how vital semiconductors have been to nations around the world. He revealed an interest in developing facilities capable of producing 2nm to 10nm nodes. However, given the resources France has at hand, an external entity would likely be required to set up facilities in the region. Macron said he needs to convince TSMC or Samsung to set up facilities in the country. This shows that Europe is ready to pivot towards self-reliance in the chip sector; however, whether it is a feasible move is a question that is yet to be decided.

Europe had high hopes of getting access to cutting-edge chips when TSMC announced a mega-project in Germany, which was funded by the government. However, there seems to be little optimism about TSMC’s German facility reaching an operational stage soon. Moreover, countries like France aren’t involved in developing products that require high-end semiconductors, and they are likely well settled with mature nodes like 16nm, for the automotive industry in particular. So, the prospects of TSMC/Samsung setting up a fab in France are slim.

However, given how production is shifting from the East to the West, Europe needs to come up with a consistent chip source, since if they get them from the US, they’ll likely need to pay the extra “American premium” in the form of tariffs. Similarly, if the region doesn’t have its own supply, nations like China might be compelled to offer their chips in the area, increasing influence over domestic production.