European Semiconductor Manufacturing Company (ESMC), a joint venture between TSMC and three European chip firms, held a groundbreaking ceremony on August 20, 2024, marking the start of construction for Europe's first FinFET-capable pure-play foundry.
The ceremony, attended by high-ranking European and German officials, celebrated a significant milestone in strengthening Europe's semiconductor manufacturing ecosystem. European Commission President Ursula von der Leyen announced a €5 billion German measure to support ESMC in constructing and operating the semiconductor fab.
"Together with our partners, Bosch, Infineon and NXP, we are building our Dresden facility to meet the semiconductor needs of the rapidly growing European automotive and industrial sectors," said TSMC Chairman & CEO C.C. Wei.
The factory, expected to be fully operational by 2026, will have a monthly production capacity of 40,000 300mm wafers using TSMC's advanced 28/22 nanometer and 16/12 nanometer FinFET process technologies. Total investments are projected to exceed €10 billion, including equity injection, debt borrowing, and support from the EU and German government.
ESMC anticipates creating around 2,000 direct high-tech professional jobs, with additional indirect jobs expected throughout the EU supply chain. The company is committed to constructing a green factory, emphasising energy efficiency, water reclamation, and LEED certification.
Dr. Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, expressed excitement about the collaboration: "Together, we will take Europe a decisive step forward in a key industry, and ensure that advanced chips are available for industrial enterprises here."
This project represents a significant advancement in European digital sovereignty and semiconductor manufacturing capabilities. The focus on automotive and industrial markets aligns with Europe's key economic sectors, potentially reshaping the continent's technological landscape.
As construction begins in earnest later this year, the Dresden facility stands poised to play a crucial role in Europe's semiconductor industry, fostering innovation and economic growth in the region.