ESMC, a joint venture between TSMC, Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V., has officially begun the initial phase of land preparation for its first semiconductor fab in Dresden, Germany. The groundbreaking ceremony, held on August 20, 2024, marked a significant milestone in the establishment of the EU’s first FinFET-capable pure-play foundry. The event was attended by prominent figures including European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz.
The new facility is expected to produce 40,000 300mm wafers per month using TSMC’s advanced 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technologies. This €10 billion investment, supported by the European Union and the German government, will not only enhance Europe’s semiconductor manufacturing capabilities but also create around 2,000 high-tech jobs and stimulate numerous indirect jobs across the EU supply chain. The fab will be built with a focus on sustainability, aiming for energy-efficient construction and LEED certification.
Key Points:
ESMC, a joint venture by TSMC, Bosch, Infineon, and NXP, breaks ground on a semiconductor fab in Dresden, Germany. The facility will produce 40,000 300mm wafers per month using advanced FinFET technology. The project represents a €10 billion investment with significant support from the EU and German government. The new fab is expected to create 2,000 direct jobs and numerous indirect jobs in the EU. Established in 2023, European Semiconductor Manufacturing Company (ESMC) is a joint venture between TSMC, Bosch, Infineon and NXP to establish an advanced semiconductor fab in Dresden, Saxony, Germany. ESMC will be the first and so far, only pure play foundry to establish a sustainable mass production with FinFET capability on EU soil. Construction of the first ESMC fab is set to begin by the end of 2024. The joint venture is 70% owned by TSMC, with Bosch, Infineon, and NXP each holding 10% equity stake. ESMC will initially focus on 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology. It will develop technology variants with a special focus on innovative differentiating technologies like automotive applications, embedded flash, RRAM, MRAM, Radio Frequency (RF) and other non-volatile memories.
ESMC will operate the fab according to TSMC’s foundry business model, ensuringopenness to customers beyond partners Bosch, Infineon and NXP.
“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.
“The construction of another semiconductor manufacturing facility in Dresden by ESMC constitutes a major success for the region,” said Infineon Technologies AG CEO Jochen Hanebeck.
“Today marks a historic milestone for the German and European microelectronics industry,” said NXP President and CEO Kurt Sievers.
