ESMC, a joint venture between TSMC, Bosch, Infineon Technologies, and NXP, officially began the land preparation for its first semiconductor fab in Dresden, Germany. This facility, set to be Europe’s first FinFET-capable pure-play foundry, represents a significant step in bolstering the EU’s semiconductor manufacturing capabilities.
ESMC, a collaboration of semiconductor giants TSMC, Bosch, Infineon Technologies, and NXP, held a groundbreaking ceremony on August 20, 2024, in Dresden, Germany, marking the commencement of its first semiconductor fab. This new facility will focus on 28/22nm planar CMOS and 16/12nm FinFET process technology, with an anticipated monthly production capacity of 40,000 wafers.
The fab, expected to exceed €10 billion in total investment, will receive substantial support from the European Union and the German government, including a €5 billion measure approved by the European Commission. The facility is projected to create approximately 2,000 direct high-tech jobs, further enhancing the semiconductor ecosystem in Europe.
“With this state-of-the-art manufacturing facility, we will bring TSMC’s advanced manufacturing capabilities within reach of our European customers and partners,” said TSMC Chairman & CEO C.C. Wei.
The Dresden fab is the first of its kind in Europe, focusing on FinFET technology, crucial for the automotive and industrial sectors. This development underscores the importance of Silicon Saxony as a hub for semiconductor innovation and strengthens Europe’s position in the global semiconductor industry.
The establishment of this facility is expected to boost the European semiconductor industry significantly, reducing dependency on non-European suppliers and enhancing digital sovereignty. The fab’s operation will not only create jobs but also stimulate economic growth throughout the region.
While the project is a significant win for Europe, some concerns have been raised regarding the environmental impact of semiconductor manufacturing and the region’s ability to meet the high energy demands of such facilities sustainably.
“The ESMC wafer fab is to be built right next door to our own Bosch wafer fab in Dresden. So now we will be able to watch it emerge and grow with our own eyes,” said Dr. Stefan Hartung, Chairman of Robert Bosch GmbH.
The groundbreaking of the ESMC fab in Dresden marks a historic moment for Europe’s semiconductor industry, paving the way for advanced technology development and stronger economic ties within the region. As construction progresses, the project will play a key role in the EU’s pursuit of technological sovereignty.
