European Semiconductor Manufacturing Company (ESMC) has held a groundbreaking ceremony to mark the initial phase for its first semiconductor fab in Dresden, Germany. ESMC is a joint venture between TSMC, Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors N.V.

Accordingly, the event brought together government officials, customers, suppliers, business partners and academia to celebrate a milestone in establishing 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, and 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 has approved, under EU State aid rules, a €5 billion German measure to support ESMC in the construction and operation of the semiconductor fab. 

State-of-the-Art Facility

“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 C.C. Wei. “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.”

When fully operational, ESMC expects to have a monthly production capacity of 40,000 300mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS. Furthermore, in 16/12 nanometer FinFET process technology. Thus, further strengthening Europe’s semiconductor manufacturing ecosystem with advanced FinFET transistor technology. For that reason, total investments may well exceed 10 billion euros. Specifically, this consists equity injection, debt borrowing, and strong support from the European Union and German government.

New Level of Collaboration

The new facility will likely 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 utilizes both existing and cutting-edge techniques to optimize conservation. This includes energy-efficient construction, water reclamation, and obtaining LEED certification.

The establishment of ESMC exemplifies the strength of TSMC’s Grand Alliance, a cornerstone of innovation within the semiconductor industry. Thus, this 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. Nonetheless, also underscores TSMC’s unwavering dedication to nurturing innovation across Europe. Construction is expected to start later this year.

21 August 2024