TSMC, Bosch, Infineon Technologies and NXP Semiconductors Collectively Announce Investment in A Semiconductor Fabrication Plant in Europe

By: Asia Business Outlook Team | Tuesday, 08 August 2023

TSMC, Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V announced a joint investment in European Semiconductor Manufacturing Company (ESMC) GmbH in Dresden, Germany, to provide advanced semiconductor manufacturing services. ESMC is a significant step towards the construction of a 300mm fab to support the future capacity needs of the fast-growing automotive and industrial sectors, with the final investment decision pending confirmation of the project's level of public funding. The project is being planned in accordance with the European Chips Act.

The planned fab will have a monthly production capacity of 40,000 300mm (12-inch) wafers on TSMC's 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology, further strengthening Europe's semiconductor manufacturing ecosystem and creating approximately 2,000 direct high-tech professional jobs. ESMC plans to start building the fab in the second half of 2024, with production starting by the end of 2027.

The planned joint venture will be 70% owned by TSMC, with Bosch, Infineon, and NXP each holding 10% equity stake, subject to regulatory approvals and other conditions. Total investments are expected to exceed 10 billion euros consisting of equity injection, debt borrowing, and strong support from the European Union and German government. The fab will be operated by TSMC.

"This investment in Dresden demonstrates TSMC's commitment to serving our customers' strategic capacity and technology needs, and we are excited about this opportunity to deepen our long-standing partnership with Bosch, Infineon, and NXP," said TSMC CEO Dr. CC Wei. "Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields," says the company, "and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe."