TSMC Set to Kickstart German Semiconductor Fab Construction in Q4 2024

May 15, 2024 – In a recent development, Taiwan Semiconductor Manufacturing Company (TSMC) has reaffirmed its commitment to commencing the construction of its German semiconductor fab in the fourth quarter of this year, with an anticipated production rollout in 2027.

Last year, TSMC forged a partnership with three leading European chipmakers – Bosch, Infineon, and NXP – to establish the European Semiconductor Manufacturing Company (ESMC). TSMC holds a 70% stake in ESMC, while the remaining 10% each is owned by Bosch, Infineon, and NXP.

The first fab of ESMC, located in Dresden, Germany, is focused on the production of automotive and industrial semiconductors. Unlike advanced process fabs, this facility is designed to target mature technologies such as 28/22nm planar CMOS and 16/12nm FinFET.

Once completed, the fab is expected to achieve a monthly production capacity of 40,000 12-inch wafers. This substantial output is set to strengthen Europe’s semiconductor manufacturing ecosystem and contribute to the global supply chain.

In a press release dated August 2023, the partners estimated that the overall investment in ESMC would exceed 10 billion euros. This significant investment underscores the commitment of all parties to the project and its strategic importance.

Zhang Xiaoqiang, the Deputy Co-COO of TSMC’s International Business Division, expressed confidence that the ESMC project would soon receive subsidies from the European Union and the German government. He further stated that ESMC aims to bring the most advanced microcontroller (MCU) technology to the forefront of automotive applications, while leaving room for TSMC to potentially expand its investments in Europe in the future.

This development represents a significant milestone in TSMC’s global expansion strategy and strengthens its position as a leading player in the global semiconductor industry.

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