TSMC, Bosch, Infineon, and NXP Invest €10 Billion in European Chip Manufacturing

TSMC, Bosch, Infineon, and NXP have announced a joint investment of €10 billion to build a chip manufacturing plant in Europe. The plant will be located in Dresden, Germany, and is expected to create over 7,000 jobs.

Introduction

In a significant stride towards bolstering Europe’s semiconductor manufacturing capabilities, renowned companies TSMC (Taiwan Semiconductor Manufacturing Company), Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. have announced a joint investment plan for the European Semiconductor Manufacturing Company (ESMC) GmbH. This collaboration aims to construct a state-of-the-art semiconductor fabrication facility (fab) in Dresden, Germany, catering to the surging demands of the rapidly growing automotive and industrial sectors. This blog post delves into the details of this groundbreaking venture and its implications for the semiconductor industry and Europe’s technological ecosystem.

The Vision of ESMC

The European Semiconductor Manufacturing Company (ESMC) marks a crucial advancement towards the realization of a 300mm fab designed to meet the future capacity requirements of the burgeoning automotive and industrial sectors. The project, situated in Dresden, Germany, will rely on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology. This cutting-edge technology promises to strengthen Europe’s semiconductor manufacturing ecosystem by incorporating advanced FinFET transistor technology.

Also Read: TSMC’s Global Expansion: Japan VS Arizona

Production Capacity and Job Creation

The planned fab is expected to boast a robust monthly production capacity of 40,000 300mm (12-inch) wafers. This capacity, harnessed with TSMC’s industry-leading semiconductor manufacturing expertise, is set to support the rapid growth of the automotive and industrial sectors. Additionally, the project is expected to create around 2,000 high-tech professional jobs, contributing to economic growth and fostering innovation in the region.

Partnership and Equity Distribution

The joint venture sees TSMC taking a 70% ownership stake, underscoring its commitment to the project’s success and the European semiconductor industry’s growth. Bosch, Infineon, and NXP each hold a 10% equity stake in the venture. However, this arrangement is contingent upon regulatory approvals and other conditions.

Investment and Support

The planned investment for the ESMC project is substantial, exceeding 10 billion euros. This investment will be comprised of equity injection, debt borrowing, and extensive support from the European Union and the German government. This support further highlights the importance of the semiconductor industry in driving innovation and economic prosperity.

Operational Timeline and European Chips Act

The timeline for the ESMC project is ambitious yet strategic. Construction of the fab is slated to commence in the second half of 2024, with production targeted to begin by the end of 2027. This timeline aligns with the European Chips Act framework, which aims to reinforce Europe’s semiconductor industry and technological independence by fostering the growth of advanced semiconductor manufacturing facilities within the region.

Industry Endorsements and Remarks

Dr. CC Wei, CEO of TSMC, emphasized the company’s dedication to addressing customer needs and advancing technology through this investment. He highlighted Europe’s potential for semiconductor innovation, particularly in the automotive and industrial sectors.

Dr. Stefan Hartung, Chairman of the Bosch board of management, underscored the importance of semiconductor availability in the automotive industry. This collaboration ensures a secure supply chain while nurturing innovation.

Jochen Hanebeck, CEO of Infineon Technologies, stressed the significance of the joint investment in strengthening the European semiconductor ecosystem. The new capacity will serve the demand of European customers in the automotive and IoT sectors, laying the foundation for innovative solutions.

Kurt Sievers, President and CEO of NXP Semiconductors, affirmed NXP’s commitment to enhancing innovation and supply chain resilience in Europe. The new semiconductor foundry will contribute to addressing the increasing digitalization and electrification of industries.

Conclusion

The joint investment by TSMC, Bosch, Infineon, and NXP in the European Semiconductor Manufacturing Company (ESMC) GmbH marks a pivotal moment for Europe’s semiconductor industry. This collaboration not only strengthens semiconductor manufacturing capabilities but also bolsters the region’s position as a global hub for semiconductor innovation. With a state-of-the-art fab, advanced technology, job creation, and substantial investment, the ESMC project is poised to play a vital role in shaping Europe’s technological future and driving growth in crucial sectors like automotive and industrial manufacturing.

Editorial Team
Editorial Team
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