The European Semiconductor Manufacturing Company (ESMC), a joint venture between Taiwan Semiconductor Manufacturing Company (TSMC), Robert Bosch, Infineon Technologies, and NXP Semiconductors, has officially begun the construction of a new chip manufacturing plant in Dresden, Germany. This facility, located next to Bosch’s existing semiconductor wafer fabrication site, will be the first in the European Union capable of producing fin field-effect transistors (FinFET).
Construction of the plant, set to start later this year, represents a significant advancement for the EU’s semiconductor sector. The facility is designed to produce 40,000 300mm (12-inch) wafers per month using TSMC’s 28/22 nanometer (nm) planar complementary metal-oxide-semiconductor (CMOS) technology, alongside its more advanced 16/12nm FinFET process. The production will rely on critical metals such as silicon, gallium, and indium, which are essential for making high-performance chips.
By bringing TSMC’s state-of-the-art semiconductor manufacturing to Europe, the Dresden plant aims to meet the increasing demand for advanced chips, particularly in the automotive and industrial markets. Amid the global semiconductor shortage, the facility is poised to play a key role in bolstering Europe’s technological self-reliance and supply chain security.
The total investment for the Dresden facility is estimated to exceed €10 billion. The European Commission has approved €5 billion in funding from the German government under EU state aid rules, highlighting the project’s strategic importance for the region’s economic and technological future.
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