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ESMC Breaks Ground on Dresden Fab

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DRESDEN, Germany, Aug. 22, 2024 — European Semiconductor Company (ESMC), a joint venture between Taiwan Semiconductor Company (TSMC), Robert Bosch GmbH, Infineon Technologies, and NXP Semiconductor N.V., has broken ground on its first semiconductor fab in Dresden, Germany.

During the ceremony, it was announced that the European Commission has approved, under European Union state aid rules, a €5 billion (~$5.6 billion) German measure to support ESMC in the construction and operation of the semiconductor fab.

When fully operational, ESMC is expected to have a monthly production capacity of 40,000 300-mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer fin field-effect transistor (FinFET) process technology, further strengthening Europe’s semiconductor manufacturing ecosystem with advanced FinFET technology. Total investments are expected to exceed €10 billion, consisting of equity injection, debt borrowing, and support from the European Union and German government.

ESMC, established last August, is 70% owned by TSMC, with Bosch, Infineon, and NXP each holding a 10% equity stake. The fab will be operated by TSMC.


Published: August 2024
Glossary
semiconductor
A semiconductor is a type of material that has electrical conductivity between that of a conductor and an insulator. In other words, semiconductors have properties that are intermediate between metals (good conductors of electricity) and insulators (poor conductors of electricity). The conductivity of a semiconductor can be controlled and modified by factors such as temperature, impurities, or an applied electric field. The most common semiconductors are crystalline solids, and they are...
BusinessFacilitysemiconductormanufacturingfabTSMCESMCEuropean Semiconductor CompanyTaiwan Semiconductor CompanygroundbreakingRobert BoschInfineon TechnologiesNXP SemiconductorInfineonDresdenGermanyEuropean UnionfundingFinFETCMOSEurope

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