TSMC's Subsidiary ESMC's Wafer Fab Project in Dresden, Germany Held Groundbreaking Ceremony

TapTechNews August 20th news, the groundbreaking ceremony of the wafer fab project of TSMC's holding subsidiary ESMC located in Dresden, Germany was held today local time.

The President of the European Commission, Ursula von der Leyen, also announced on X platform today that the EU has approved the German government's national subsidy of about 5 billion euros (TapTechNews note: currently about 39.481 billion yuan) to ESMC.

This subsidy will provide solid financial support for the construction of the wafer fab with a total investment of 10 billion euros. The subsidy from the German government to ESMC is also the largest single subsidy approved by the EU according to its Chip Act so far.

Von der Leyen said at the groundbreaking ceremony: This is a real win-win situation for all of us.

The German Chancellor Olaf Scholz said: Our future sustainable technologies rely on semiconductors, but we must never rely on other regions of the world to supply semiconductors.

ESMC is 70% owned by TSMC, and the three European partner companies Bosch, Infineon and NXP each own 10% shares. The ESMC wafer fab aims to achieve mass production in 2027 with a monthly capacity of up to 40,000 12-inch wafers.

In terms of process technology, the ESMC wafer fab focuses on mature nodes that play an important role in the automotive and industrial fields and will have the production capacity of 28/22nm planar CMOS and 16/12nm FinFET.