TSMC, the world‘s largest manufacturer of semiconductors, will invest EUR 3.5 billion in a joint project with three other European industrial companies to build a semiconductor production facility in Dresden in eastern Germany. The joint venture known as European Semiconductor Manufacturing Company (ESMC) will be 70 % owned by TSMC, with Bosch, Infineon, and NXP each holding 10% equity stake, subject to regulatory approvals and other conditions. The factory will cost around EUR 10 billion in total.
The plant, which will be operated by TSMC, will provide advanced semiconductor manufacturing services to support the future capacity needs of the fast-growing automotive and industrial sectors. It is expected to have monthly production of 40,000 300 mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology, further strengthening Europe’s semiconductor manufacturing ecosystem with advanced FinFET transistor technology and creating about 2,000 direct high-tech professional jobs. Construction is expected to begin in the second half of 2024 with production to begin by the end of 2027.
Under the framework of the European Chips Act, the German government will reportedly provide subsidies of EUR 5 billion to support the project.
“This investment in Dresden demonstrates TSMC’s commitment to serving our customers’ strategic capacity and technology needs, and we are excited at this opportunity to deepen our long-standing partnership with Bosch, Infineon, and NXP,” said Dr. CC Wei, Chief Executive Officer of TSMC. “Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe.”
