European Chip Joint Venture Begins Construction of Advanced Semiconductor Plant in Germany

European Semiconductor Manufacturing Company (ESMC), a joint venture formed by Taiwan Semiconductor Manufacturing Company (TSMC), Robert Bosch, Infineon Technologies, and NXP Semiconductors, has officially started construction on a groundbreaking new chip manufacturing plant in Dresden, Germany. This plant, strategically located next to Bosch's existing semiconductor wafer fabrication facility, is set to become the European Union's first foundry capable of producing fin field-effect transistors (FinFET).

Construction of the plant, which is expected to begin later this year, marks a significant milestone for the EU's semiconductor industry. The facility will be equipped to produce 40,000 300mm (12-inch) wafers per month using TSMC's 28/22 nanometer (nm) planar complementary metal-oxide-semiconductor (CMOS) technology and its more advanced 16/12nm FinFET process technology. These technologies utilize metals such as silicon, gallium, and indium, essential for manufacturing high-performance chips.

The Dresden plant aims to bring TSMC’s cutting-edge semiconductor manufacturing capabilities to Europe, addressing the rapidly growing demand for advanced chips in the automotive and industrial sectors. With the global semiconductor shortage highlighting the need for robust local production, this facility is expected to play a crucial role in strengthening Europe’s technological independence.

The total investment for the Dresden plant is projected to exceed €10 billion. The European Commission has approved €5 billion in funding from the German government under EU state aid regulations, underscoring the strategic importance of this project to the region's economic and technological future.