TSMC Starts Construction of First European Semiconductor Factory with Partners
TapTechNews August 21st news, the European Semiconductor Manufacturing Company (ESMC), a joint venture established by TSMC together with Bosch, Infineon and NXP, held a groundbreaking ceremony today in Dresden, Germany, officially kicking off the land preparation work for TSMC's first European semiconductor factory. TSMC said the factory is expected to start construction later this year.
TSMC's CEO Wei Zhejia presided over the ceremony, and German Chancellor Olaf Scholz and European Commission President Ursula von der Leyen attended the ceremony and delivered speeches. To show firm support, President von der Leyen announced that the European Commission has approved a 5 billion euros ($5.49 billion) aid package from Germany under EU state aid rules to support the construction and operation of the semiconductor factory of the European Semiconductor Manufacturing Company (ESMC).
Scholz defended the high subsidies for the German semiconductor industry, saying that high subsidies can guarantee the chip demand and employment opportunities of German enterprises, and have an extra boost on the entire regional economy.
Wei Zhejia said: We are building the Dresden factory together with our partners Bosch, Infineon and NXP to meet the rapidly growing demand for semiconductors in the European automotive and industrial sectors. Through this advanced manufacturing factory, we will bring TSMC's advanced manufacturing capabilities to European customers and partners, promote the economic development of this region, and drive the technological progress of the entire Europe.
After full commissioning, it is expected that the monthly capacity of ESMC will be 40,000 300-millimeter (12-inch) wafers, adopting TSMC's 28/22-nanometer planar CMOS and 16/12-nanometer FinFET process technologies, and use advanced FinFET transistor technology to further strengthen the semiconductor manufacturing ecosystem in Europe. The total investment is expected to exceed 10 billion euros (TapTechNews note: currently about 78.962 billion yuan), coming from equity injection, debt financing, and strong support from the EU and the German government.
The new factory is expected to create about 2,000 direct high-tech professional jobs. In addition, each direct job created by this project is expected to stimulate a large number of indirect jobs in the entire EU supply chain and boost the economy of this region.