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Taiwan’s TSMC Building $10 Billion Semiconductor Plant in Germany

Minister-President of the Saxony state Michael Kretschmer, European Commission President Ursula von der Leyen, C.C. Wei, Chairman and CEO of TSMC and German Chancellor Olaf Scholz attend a groundbreaking ceremony for Taiwanese chip maker TSMC's first European plant in the eastern city of Dresden, Germany, August 20, 2024. (Reuters)
Minister-President of the Saxony state Michael Kretschmer, European Commission President Ursula von der Leyen, C.C. Wei, Chairman and CEO of TSMC and German Chancellor Olaf Scholz attend a groundbreaking ceremony for Taiwanese chip maker TSMC's first European plant in the eastern city of Dresden, Germany, August 20, 2024. (Reuters)
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Taiwan’s TSMC Building $10 Billion Semiconductor Plant in Germany

Minister-President of the Saxony state Michael Kretschmer, European Commission President Ursula von der Leyen, C.C. Wei, Chairman and CEO of TSMC and German Chancellor Olaf Scholz attend a groundbreaking ceremony for Taiwanese chip maker TSMC's first European plant in the eastern city of Dresden, Germany, August 20, 2024. (Reuters)
Minister-President of the Saxony state Michael Kretschmer, European Commission President Ursula von der Leyen, C.C. Wei, Chairman and CEO of TSMC and German Chancellor Olaf Scholz attend a groundbreaking ceremony for Taiwanese chip maker TSMC's first European plant in the eastern city of Dresden, Germany, August 20, 2024. (Reuters)

Taiwan Semiconductor Manufacturing Co (TSMC) broke ground in eastern Germany on its first European plant as the continent seeks to safeguard its chip supplies amid growing US-China tensions.

“We are dependent on semiconductors for our sustainable future technologies, but we must not be dependent on other regions of the world for the supply of semiconductors,” said German Chancellor Olaf Scholz, who attended a ceremony on Tuesday to mark the start of construction of the 10 billion euros ($11 billion) manufacturing plant in the city of Dresden. About half of the funding will be covered by state subsidies.

Germany is leading the European Union push to produce one-fifth of the world's semiconductors by 2030, with the bloc seeking to build up capacity following Covid-era disruptions and as US-China ties deteriorate.

The US, Japan and others are also showering subsidies on the chip industry to localize production of the components that control everything from cutting-edge artificial intelligence to daily gadgets.

TSMC is the world's biggest contract chipmaker, with Apple Inc and Nvidia Corp relying on it for their most important products. It will anchor the Dresden project with a 70% stake in the plant, which will produce chips for the automotive and industrial sectors.

TSMC CEO C.C. Wei attended the event together with European Commission President Ursula von der Leyen and the heads of Infineon Technologies AG, NXP Semiconductors NV and Robert Bosch GmbH, which each hold a 10% stake in the venture.

Scholz has emerged as Europe's biggest backer of the semiconductor industry as he seeks to promote Germany's tech sector and secure supplies of critical components for the country's manufacturing businesses.

His government plans to spend 20 billion euros to bolster domestic chip production. That includes the TSMC plant and 10 billion euros in aid for a planned Intel Corp plant in Magdeburg.

The EU approved Germany's 5 billion euros subsidy for the Dresden microchip manufacturing plant, von der Leyen said at the event.

The new site will help Europe reduce its reliance on Asia for importing vital technology and comes after German carmakers expressed interest in boosting domestic chip production. Production is slated to begin by the end of 2027.

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Technology

Samsung Electronics Expects Record Quarterly Profit on AI Boom

People visit a Samsung Electronics store gallery in Seoul, South Korea, 07 April 2026. (EPA)
People visit a Samsung Electronics store gallery in Seoul, South Korea, 07 April 2026. (EPA)
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Samsung Electronics Expects Record Quarterly Profit on AI Boom

People visit a Samsung Electronics store gallery in Seoul, South Korea, 07 April 2026. (EPA)
People visit a Samsung Electronics store gallery in Seoul, South Korea, 07 April 2026. (EPA)

Tech giant Samsung Electronics estimated on Tuesday that its first quarter profit had soared 755 percent annually to a record high of 57.2 trillion won ($37.9 billion), driven by strong sales of chips crucial for artificial intelligence.

The South Korean government has pledged to become one of the world's top three AI powers, alongside the United States and China.

Samsung has emerged as a key player -- along with fellow South Korean firm SK hynix -- in the supply of high-performing chips in demand from companies racing to keep up with the fast-evolving AI industry.

The company also said in a regulatory filing that its sales were expected to reach 133 trillion won ($88 billion) in the three months to the end of March, a 68 percent increase compared to the same period last year.

The strong outlook comes despite the risk posed to the global semiconductor supply chain if the war in the Middle East drags on.

A South Korean ruling party lawmaker told reporters last month that officials from Samsung and other companies had raised concern about potential disruption to chip production if some key supply chain materials, such as helium, cannot be sourced from the Middle East.

"Samsung Electronics achieved its highest-ever results, driven by rising revenue and profits in its memory-focused Device Solutions (DS) division," a Samsung spokesperson said.

He said the firm's competitiveness in home appliances and smartphones has helped to boost earnings.

The operating profit -- more than an eight-fold increase from 6.69 trillion won a year earlier -- was 36.7 percent higher than the average estimate, South Korea's Yonhap news agency reported, citing its own data firm.

- Growing demand -

With growing demand for memory chips, Samsung is expected to see "even better figures" in the months ahead, analyst Ryu Hyung-keun of Daishin Securities told AFP.

"As we are seeing a surge in memory chip prices, its profit margins will improve further for the remainder of the year," he said.

But the company is facing risks, said Kim Dae-jong, a business professor at Sejong University.

"A labor union strike scheduled for next month and the war in Iran are weighing on the outlook," he told AFP.

"The Middle East is Samsung's key market for home appliances, and demand from the region is significant, making it a source of concern."

Meanwhile, LG Electronics, South Korea's second-largest appliance maker after Samsung, also projected record first-quarter revenue of 23.73 trillion won.

"Despite continued macroeconomic uncertainty, the company's core businesses, including home appliances, maintained growth based on strong product competitiveness and solid market positions," the company said in a statement.

- Pushing up prices -

Samsung has seen strong orders from major technology firms for high-bandwidth memory -- a type of chip that is used in data centers and AI "accelerators", which are useful in carrying out demanding tasks and computation.

That is also pushing up the cost of less flashy chips used in consumer electronics -- threatening higher prices for phones, laptops and other devices worldwide.

Riding the AI boom, Samsung's shares have risen more than 240 percent over the past year.

Samsung did not provide earnings breakdowns from its separate divisions, such as the chip and mobile divisions.

Taipei-based research firm TrendForce predicts that memory chip industry revenue will surge to a global peak of more than $840 billion in 2027.

Samsung has already earmarked billions of dollars to expand chip production facilities, pledging to continue spending in "transitioning to advanced manufacturing processes and upgrading existing production lines to meet rising demand".

Experts have said the move would help Samsung seize the moment in the intensifying race for chips critical to AI infrastructure.

Samsung is expected to disclose its final quarterly earnings report at the end of April.

The firm's shares were up 0.73 percent in the afternoon trade in Seoul.

Technology

Samsung Is Discontinuing Its Texting App, Tells Impacted Users to Switch to Google Messages

Samsung unveils its latest Galaxy smartphones during a showcase in San Francisco, Feb. 25, 2026. (AP)
Samsung unveils its latest Galaxy smartphones during a showcase in San Francisco, Feb. 25, 2026. (AP)
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Samsung Is Discontinuing Its Texting App, Tells Impacted Users to Switch to Google Messages

Samsung unveils its latest Galaxy smartphones during a showcase in San Francisco, Feb. 25, 2026. (AP)
Samsung unveils its latest Galaxy smartphones during a showcase in San Francisco, Feb. 25, 2026. (AP)

Samsung is saying goodbye its namesake texting app.

According to an end of service announcement published on the tech giant's US support website, Samsung Messages will be discontinued in July. Impacted owners of Samsung smartphones and other gadgets are being asked to switch to Google Messages in the meantime, “to maintain a consistent messaging experience on Android.”

All Samsung Galaxy phones run on Google's Android operating system. To switch to Google Messages, Samsung's website gives users instructions to download the app from the Play Store, if not already on their phone, and set it as the default. Some people may also receive an in-app notification to guide them through the process.

Samsung says switching to Google Messages will give users access to updates like the latest artificial intelligence features from Google's Gemini — which includes an experimental feature called “Remix” to generate images during conversations and AI-powered reply suggestions — and the ability to share higher quality photos between Android and Apple iOS devices through RCS-enabled messages.

Users of older Android operating systems (dating back to Android 11 or older) will not be impacted by the end of Samsung Messages, the company noted. To check what Android OS you have on a Samsung device, open the settings app, click on “software information” and scroll to “Android version.”

Meanwhile, owners of Samsung's latest Galaxy 26 lineup and other newer phones cannot download the Samsung Messages app from the Galaxy Store today.

All devices will no longer be able to download Samsung Messages after it's officially discontinued in July, the company noted. Samsung said users can check their app for the exact date for when service will go offline.

Beyond the US, Samsung did not immediately respond to a request for further information about whether its guidance for Samsung Messages was the same globally.

Technology

Microsoft to Invest $10 bn for Japan AI Data Centers

Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP
Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP
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Microsoft to Invest $10 bn for Japan AI Data Centers

Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP
Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP

Microsoft said Friday it will invest $10 billion in Japan over the next four years to build artificial intelligence data centers and related infrastructure.

Power-hungry data centers -- warehouse-like facilities that power AI tools from chatbots to image generators -- are springing up worldwide, and the sector is growing particularly fast in Asia.

Microsoft President Brad Smith met Japanese Prime Minister Sanae Takaichi at her office on Friday to announce the investment, said AFP.

Smith said in a statement that it was a "response to Japan's growing need for cloud and AI services".

Businesses in Japan, the world's fourth-largest economy, are keen to get ahead in the fast-moving AI field.

But data centers expansion there is constrained by limited space and relatively expensive electricity.

The US tech giant will collaborate with Japan's SoftBank Group and Sakura Internet to expand domestic tech infrastructure, it said in a press release.

It follows a $2.9 billion two-year investment Microsoft announced in 2024 to bolster the country's push into AI and strengthen its cyber defenses.

The investment unveiled Friday also includes funds to enhance cybersecurity partnerships with Japanese government agencies, and to train one million engineers in cooperation with telecom and tech giants NTT and NEC.

A rush to build data centers in the Asia-Pacific region, especially in India and Southeast Asia, has sparked concerns over the facilities' environmental impact.

That includes increased demand on electricity grids that are often reliant on fossil fuels, and on local water supplies used to cool the hot servers inside.

Microsoft says it has pledged to become carbon negative, zero-waste and "water positive" by 2030.

On Tuesday, the company announced plans to invest more than $1 billion in cloud and AI data center infrastructure and operations in Thailand over the next two years.