In the global race for semiconductor chips, Taiwanese suppliers are considering investing in European chip factories, according to a report by The Next Web. Vincent Liu, president and CEO of LCY Group, a supplier of cleaning agents and solvents to Taiwan Semiconductor Manufacturing Co (TSMC), stated that they are planning investments in Germany, and the European market is going to be theirs. LCY Group is not alone in this endeavor, as three other chemicals suppliers to TSMC have also expressed interest in investing in Europe. This interest can be attributed to the emergence of advanced chip factories in the European Union (EU), supported by the EU's Chips Act. The Chips Act aims to mobilize €43 billion (USD 49.6 billion) in public and private investments to increase the EU's share in global production capacity from 10% to 20% by 2030. Under this scheme, the EU is offering subsidies to incentivize foreign chip manufacturers to establish factories within its borders.

Several major players have already announced their plans to invest in European chip production. Intel, for example, has pledged to invest €30 billion (USD 34.5 billion) in two chip plants in Germany and is also planning to build a semiconductor assembly and testing facility in Poland worth €4.6 billion (USD 5.3 billion). TSMC has partnered with European chipmakers Infineon and NXP, as well as auto supplier Bosch, to build a €10 billion (USD 11.5 billion) chip plant in Germany. Additionally, GlobalFoundries and STMicroelectronics are planning a €5.7 billion (USD 6.6 billion) factory in France.

The EU's aim to establish domestic chip production and strengthen the supply chain is crucial to reduce its heavy reliance on a few foreign suppliers, such as China and Taiwan for manufacturing, and the US for design. While experts claim that achieving complete semiconductor independence is "impossible" for the EU, these investments are expected to enhance the bloc's competitiveness in the sector. Věra Jourová, the Commission's VP for Values and Transparency, emphasized the importance of Europe securing an active part in the global race for chip leadership. The investments by Taiwanese suppliers and other major players will contribute to achieving this goal.

By investing in European chip factories, Taiwanese suppliers are not only expanding their market presence but also aligning themselves with the EU's strategic goals. This collaboration between Taiwan and Europe has the potential to reshape the semiconductor industry landscape and foster greater technological independence for the EU. As the chip wars escalate between the US, EU, and China for tech supremacy, these investments mark a significant step towards strengthening Europe's position in the global semiconductor market.