[News] Broadcom Reportedly Scraps $1 Billion Chip Investment in Spain

According to a report from Alerta, citing Europa Press, sources state that Broadcom has scrapped its plan of building a microchip manufacturing plant in Spain, promoted under Spain’s Strategic Project for Economic Recovery and Transformation (PERTE Chip)

The company announced in the summer of 2023 its decision to invest in Spain. As noted by the report, the now reportedly cancelled project involved a back-end semiconductor manufacturing plant—focused on the final assembly and testing phase—and was expected to entail an investment of nearly USD 1 billion (approximately EUR 850 million).

However, negotiations between Broadcom and the Spanish government stalled throughout 2024, and the inauguration of Donald Trump as U.S. president at the start of 2025 reportedly delivered the final blow to the project, as the report notes.

Major chipmakers have scaled back or adjusted their investment plans in Europe. As noted by Bloomberg, Intel postponed its EUR 30 billion chip factory in Magdeburg, Germany, in September 2024. Wolfspeed and German automotive supplier ZF Friedrichshafen AG have also pulled back on expansion efforts in Germany.

Continued Semiconductor Investments in Germany and France

Meanwhile, Commercial Times, citing Reuters, notes that TSMC plans to open a chip design center in Munich, Germany—its first of its kind in Europe—scheduled to launch in the third quarter of 2025. The report mentions that TSMC, in partnership with Infineon, NXP, and Robert Bosch, is building a EUR 10 billion (USD 11.33 billion) semiconductor manufacturing facility in Dresden through a joint venture called ESMC. Construction began in 2024, with volume production targeted by the end of 2027, the report adds.

Another major Taiwanese player, Foxconn, has announced investments in France. According to Economic Daily News, the company revealed in May 2025 a EUR 250 million investment plan in Europe, which includes forming a joint venture in France with Thales and Radiall focused on advanced semiconductor packaging and testing (OSAT), along with a strategic satellite partnership with Thales.

NXP is also expanding its footprint across Europe. As noted by Reuters, the Netherlands-based chipmaker has secured a EUR 1 billion (USD 1.03 billion) loan from the European Investment Bank (EIB) to fund research and development projects across five countries: Austria, France, Germany, the Netherlands, and Romania.

Read more

• [News] Broadcom’s New Networking Chip for AI Reportedly Built on TSMC’s 3nm; Full Shipments Expected in July
• [News] TSMC to Open First European Design Center in Munich by Q3 2025, Focusing on AI and Automotive

(Photo credit: Broadcom)