ESMC, a collaborative venture between TSMC, Robert Bosch, Infineon Technologies, and NXP Semiconductors, has commenced the initial phase of land preparation for its inaugural semiconductor fab in Dresden, Germany.
This milestone event was marked by a ceremony attended by a diverse group of stakeholders, including government officials, customers, suppliers, business partners, and academic representatives. The new facility is set to become the European Union’s first FinFET-capable pure-play foundry.
The ceremony was graced by notable figures, including European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, Saxony Minister President Michael Kretschmer, and Lord Mayor of Dresden, Dirk Hilbert. During the event, President von der Leyen announced that the European Commission had approved a €5 billion German measure under EU State aid rules to support the construction and operation of the ESMC semiconductor fab.
TSMC Chairman & CEO C.C. Wei expressed the venture’s significance: “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. 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.”
Upon completion, ESMC is expected to operate with a monthly production capacity of 40,000 300mm (12-inch) wafers, utilising TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technologies. This development will further enhance Europe’s semiconductor manufacturing ecosystem by introducing advanced FinFET transistor technology. The total investment for the project is anticipated to exceed €10 billion, funded through a combination of equity injection, debt borrowing, and robust support from both the European Union and the German government.
The new facility is projected to create approximately 2,000 high-tech professional jobs. Additionally, the project is expected to generate numerous indirect jobs across the EU supply chain, contributing to the region’s economic growth. ESMC has committed to upholding TSMC’s standards of sustainability and environmental protection. The fab will incorporate energy-efficient construction, water reclamation systems, and will seek LEED certification as part of its dedication to building a green facility.
The establishment of ESMC underscores the strength of TSMC’s Grand Alliance, a key driver of innovation in the semiconductor industry. This alliance represents a deeper level of collaboration among TSMC’s partners and reflects TSMC’s ongoing commitment to fostering innovation across Europe. Construction of the facility is expected to begin later this year.
Dr. Stefan Hartung, Chairman of the Board of Management at Robert Bosch GmbH, remarked: “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.”
Infineon Technologies AG CEO Jochen Hanebeck highlighted the regional impact: “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.”
NXP President and CEO Kurt Sievers added: “Today marks a historic milestone for the German and European microelectronics industry. NXP is proud to be part of the ESMC joint venture, which will deliver innovative semiconductor solutions and manufacturing capacity focused on Europe’s key markets: the automation and electrification of the automotive and industrial sectors. Today’s groundbreaking ceremony in Dresden on TSMC’s first manufacturing facility in Europe is a significant and tangible step forward for European digital sovereignty.”
