The Federal Ministry for Economic Affairs and Climate Action of Germany (BMWK) has officially approved financing for TSMC's wafer fab project in Dresden. The German government has signed an agreement with the four companies co-investing in European Semiconductor Manufacturing Company (ESMC) - TSMC, Bosch, Infineon, and NXP. On December 13, Germany's Federal Minister for Economic Affairs Robert Habeck formally announced the launch of this joint investment project.
The overall investment for ESMC will exceed EUR10 billion (US$10.5 billion), with the German government contributing about half, or EUR5 billion. TSMC will invest approximately 35%, while European partners Bosch, Infineon, and NXP will each contribute around 5%.
Habeck stated that this investment marks an important milestone for Germany as an industrial and technological center. ESMC is expected to create job opportunities, add value, and foster innovation, helping Germany become more competitive, reduce reliance on global markets, and strengthen its digital future.
TSMC chairman C.C. Wei expressed gratitude for the German government's support, believing that ESMC will play a crucial role in supporting the global semiconductor market.
The facility will produce automotive and industrial semiconductor products using mature processes ranging from 28nm to 12nm, with a full capacity reaching approximately 41,700 12-inch wafers per month. Production will focus on supporting small and medium-sized enterprises and startups in Europe, prioritizing orders from the European Union and Germany to ensure the security of the chip supply chain in the EU region.
