European Semiconductor Manufacturing Company (ESMC), a joint venture between TSMC, Robert Bosch, Infineon Technologies, and NXP Semiconductors, is building its first semiconductor fab in Dresden, Germany.
TSMC is a Taiwan-based semiconductor manufacturing company.
Robert Bosch is a German-based multinational engineering and technology company.
Infineon Technologies is Germany's largest semiconductor manufacturer.
NXP Semiconductors is a Netherlands-based semiconductor manufacturing and design company. It is the third-largest European semiconductor company by market capitalisation as of 2024.
A groundbreaking ceremony was held to mark the initial phase of land preparation for its first semiconductor fab in Dresden, Germany.
ESMC is a joint venture between TSMC, Robert Bosch, Infineon Technologies, and NXP Semiconductors
The event brought together government officials, customers, suppliers, business partners and academia to celebrate a milestone in establishing what will be the EU’s first-ever FinFET-capable pure-play foundry.
Distinguished guests included President of the European Commission Ursula von der Leyen, German Chancellor Olaf Scholz, Saxony Minister President Michael Kretschmer, and Lord Mayor of Dresden Dirk Hilbert.
In a demonstration of dedicated support, during the event, President von der Leyen announced that the European Commission approved, under EU State aid rules, a €5 billion (Euros) German measure to support ESMC in the construction and operation of the semiconductor fab.
TSMC Chairman and CEO, C.C. Wei, said: “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.”
Construction is expected to start later this year
“With this state-of-the-art manufacturing facility, we will bring TSMC’s advanced manufacturing capabilities within reach of our European customers and partners, which will stimulate economic development within the region and drive technological advancements across Europe,” Wei concluded.
The new facility
Construction is expected to start later this year and the new facility is expected to generate around 2,000 direct high-tech professional jobs.
Additionally, each direct job created by the project is expected to stimulate the creation of numerous indirect jobs throughout the EU supply chain, bolstering the region’s economy.
ESMC will uphold TSMC’s standards of sustainability and environmental protection. In line with this mission, ESMC and its partners are dedicated to constructing a green fab that utilises both existing and cutting-edge techniques to optimise conservation. This includes energy-efficient construction, water reclamation, and obtaining LEED certification.
The ESMC wafer fab is to be built right next door to our own Bosch wafer fab in Dresden
When fully operational, ESMC is expected to have a monthly production capacity of 40,000 300mm (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.
Total investments are expected to exceed €10 billion consisting of equity injection, debt borrowing, and strong support from the European Union and German government.
Chairman of the board of management of Robert Bosch, Dr Stefan Hartung, said: “The ESMC wafer fab is to be built right next door to our own Bosch wafer fab in Dresden. So now we will be able to watch it emerge and grow with our own eyes. We’re looking forward to that, just as we are to collaborating closely with our partners TSMC, Infineon, and NXP. Together, we will take Europe a decisive step forward in a key industry, and ensure that advanced chips are available for industrial enterprises here.”
The ESMC alliance
The establishment of ESMC exemplifies the strength of TSMC’s Grand Alliance, a cornerstone of innovation within the semiconductor industry.
The alliance has driven groundbreaking advancements, bringing together TSMC’s partners for a new level of collaboration.
The investment in ESMC signifies not just a deeper commitment to this strategic partnership, but also underscores TSMC's unwavering dedication to nurturing innovation across Europe.
The new facility is expected to generate around 2,000 direct high-tech professional jobs
CEO of Infineon Technologies, Jochen Hanebeck, said: “Our joint investment in Dresden once again highlights the enormous significance of Silicon Saxony as a magnet for leading international semiconductor manufacturers.”
"The construction of another semiconductor manufacturing facility in Dresden by ESMC constitutes a major success for the region. We are bringing to Europe a particularly important semiconductor technology which is used in the most modern digital chips. This investment will create additional jobs and will permanently strengthen the semiconductor ecosystem in Silicon Saxony, in Germany and in Europe as a whole,” Hanebeck concluded.