TSMC, Bosch, Infineon Technologies and NXP Semiconductors have announced a plan to collaboratively invest in European Semiconductor Manufacturing Company (ESMC), in Dresden, Germany, to provide advanced semiconductor manufacturing services.
The ESMC project is planned under the framework of the European Chips Act, and marks a significant step toward the construction of a 300mm fab to support the automotive and industrial sector’s future capacity requirements. The final investment decision is pending confirmation of the level of public funding.
It is anticipated that the planned fab will have an estimated monthly production capacity of 40,000 300mm wafers on TSMC’s 28/22nm planar CMOS and 16/12nm FinFET process technology, bolstering Europe’s semiconductor manufacturing ecosystem with advanced FinFET transistor technology.
At present, ESMC aims to start construction of the fab in the second half of 2024 with production scheduled to begin by the end of 2027.
TSMC will own 70% of the JV, with Bosch, Infineon and NXP each holding a 10% equity stake, subject to regulatory approvals and other conditions. Total investments are estimated to exceed €10bn (US$11bn) with support being provided by the European Union and German government.
“This investment in Dresden demonstrates TSMC’s commitment to serving our customers’ strategic capacity and technology needs, and we are excited at this opportunity to deepen our long-standing partnership with Bosch, Infineon and NXP,” said Dr CC Wei, chief executive officer of TSMC.
“Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe.”
Dr Stefan Hartung, chairman of the Bosch board of management, added, “Semiconductors are not only a crucial success factor for Bosch. Their reliable availability is also of great importance for the success of the global automotive industry. Apart from continuously expanding our own manufacturing facilities, we further secure our supply chains as an automotive supplier through close cooperation with our partners. With TSMC, we are pleased to gain a global innovation leader to strengthen the semiconductor ecosystem in the direct vicinity of our semiconductor plant in Dresden.”