ESMC has commenced construction on a new semiconductor fabrication facility in Dresden, Germany. The joint venture between TSMC, Robert Bosch, Infineon, and NXP is investing over EUR10 billion (US$11 billion) to establish the EU's first FinFET-capable pure-play foundry. This facility is anticipated to enhance semiconductor manufacturing capabilities in Europe and generate significant employment opportunities.
On August 20, ESMC, a joint venture between TSMC, Robert Bosch, Infineon Technologies, and NXP Semiconductors, held a groundbreaking ceremony for its first semiconductor fab in Dresden, Germany. The event was attended by government officials, industry leaders, and academic representatives, including European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, Saxony Minister President Michael Kretschmer, and Lord Mayor of Dresden Dirk Hilbert.
This new fab, the first FinFET-capable pure-play foundry in the EU, is set to bolster Europe's semiconductor manufacturing landscape. Once fully operational, the facility is expected to produce 40,000 12-inch wafers per month, utilizing TSMC's 28/22nm CMOS and 16/12nm FinFET process technology.
This will further strengthen Europe's semiconductor ecosystem with cutting-edge FinFET transistor technology. The total investment is expected to exceed EUR10 billion, comprising equity injections, debt financing, and substantial support from the European Union and the German government.
"Together with our partners, Bosch, Infineon, and NXP, we are building our Dresden facility to meet the semiconductor needs of the rapidly growing European automotive and industrial sectors," said TSMC Chairman & CEO CC Wei. "This state-of-the-art manufacturing facility will bring TSMC's advanced manufacturing capabilities closer to our European customers and partners, driving economic development and technological advancements across Europe."
Stefan Hartung, Chairman of the Board of Management of Robert Bosch, expressed enthusiasm for the ESMC wafer fab in Dresden, noting that the new facility will be located adjacent to Bosch's existing wafer fab, enabling close collaboration. He underscored the significance of this partnership with TSMC, Infineon, and NXP in advancing Europe's semiconductor industry and ensuring a reliable supply of advanced chips for industrial applications.
Jochen Hanebeck, CEO of Infineon Technologies, highlighted the importance of the ESMC wafer fab project in Dresden and the advanced semiconductor technology it will bring to Europe, particularly for cutting-edge digital chips. He emphasized the positive impact of the investment on job creation and the strengthening of the semiconductor ecosystem in Silicon Saxony, Germany, and Europe.
Kurt Sievers, President and CEO of NXP, described the ESMC groundbreaking ceremony as a historic milestone for the German and European microelectronics industries. He expressed NXP's pride in being part of this joint venture, which will focus on delivering innovative semiconductor solutions and expanding manufacturing capacity for key European markets such as automotive automation, electrification, and industrial applications.
Fourth EU-Approved Aid
The EU has approved a EUR5 billion German government initiative to support ESMC in building the new microchip factory in Dresden. According to a press release, this decision is in line with the European Chips Act, which aims to strengthen Europe's semiconductor supply chain.
The new fab will be the first in Europe to offer advanced manufacturing capabilities for innovative technologies and chips. The European Commission determined that the subsidies were essential to attract investment and would not significantly harm competition.
The European Commission added that this measure is expected to have a positive impact on the European semiconductor ecosystem, including job creation, strengthening supply chain security, and supporting research and development. ESMC has also committed to prioritizing orders for crisis-relevant products and applying for recognition as an Open EU Foundry under the EU Chips Act Regulation.
The ESMC project marks the fourth such decision by the Commission. Previous approvals include subsidies for STMicroelectronics' SiC wafer plant in Catania, Italy, a joint venture with GlobalFoundries in France, and another STMicroelectronics project in Italy. These decisions underscore the EU's commitment to bolstering its semiconductor supply chain.
