TSMC and Leading Industry Players Join Forces to Establish European Semiconductor Manufacturing Hub

Feature

• To invest in the European Semiconductor Manufacturing Company (ESMC) GmbH, TSMC, Robert Bosch, Infineon, and NXP are working together.
• TSMC holds 70% in joint venture; Bosch, Infineon, NXP each have 10% pending regulatory nod for stock ownership.
• The creation of the fab is expected to create about 2,000 high-tech professional jobs.

TSMC invests in ESMC with Bosch, Infineon, NXP to boost European semiconductor manufacturing at Dresden, Germany-based company. To assist Europe’s expanding automotive and industrial sectors, this strategic alliance intends to establish a cutting-edge semiconductor production plant. The initiative aligns with the parameters of the European Chips Act and promises to impact the region’s semiconductor industry significantly.

The European Chips Act and ESMC

• To invest in the European Semiconductor Manufacturing Company (ESMC) GmbH, TSMC, Robert Bosch, Infineon, and NXP are working together.
• ESMC plans to build a 300mm fab in Dresden, Germany, to address the rising demand in the industrial and automotive industries.
• The initiative, which the European Chips Act covers, can only proceed once we confirm public funding.

Advanced Fab Capabilities

• The proposed fab will offer a monthly output capacity of 40,000 300mm wafers.
• Modern 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology from TSMC will be used in manufacturing.
• Adopting cutting-edge FinFET transistor technology will strengthen the ecosystem of European semiconductor production.

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Job Creation and Timeline

Ownership and Investment

• TSMC holds 70% in joint venture; Bosch, Infineon, NXP each have 10% pending regulatory nod for stock ownership.
• Anticipated near 10 billion euros investments entail debt, private funding, substantial EU, and German government support.
• TSMC will oversee operations at the fab.

Industry Leaders’ Perspectives

• The CEO of TSMC, Dr. CC Wei, highlights the company’s dedication to meeting customers’ capacity and technological demands while attempting to take advantage of Europe’s potential for semiconductor innovation.
• The chairman of Bosch, Dr. Stefan Hartung, emphasizes the importance of semiconductor supply for Bosch and the worldwide automotive sector while praising the improved environment.
• According to Infineon Technologies CEO Jochen Hanebeck, the milestone is crucial for bolstering the European semiconductor ecosystem and meeting the needs of the automotive and IoT industries.
• Kurt Sievers, president, and chief executive officer of NXP Semiconductors, applauds the assistance from Germany and the European Union and emphasizes the new semiconductor foundry’s significance in tackling difficulties associated with digitization and electrification in the automotive and industrial sectors.

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Conclusion

The formation of ESMC, a joint venture with TSMC, Robert Bosch, Infineon, and NXP, bolsters Europe’s semiconductor prowess effectively. Cutting-edge fab tech in Dresden forms global semiconductor hub, boosting innovation and resilience in vital sectors through advanced capacities.