Taiwan Semiconductor Manufacturing Company (TSMC) which is the world’s largest contract chip manufacturer, has unveiled its plans of establishing a fab factory in Dresden, Germany. In collaboration with Robert Bosch, Infineon Technologies and NXP Semiconductors, this strategic initiative, marks a significant expansion of TSMC’s global footprint into the European semiconductor market.
On 20 August, TSMC Chairman and CEO C C Wei will lead a delegation that will take part in a ceremony to commemorate this significant milestone. Infineon, NXP, Bosch and TSMC will each own 10 per cent of the USD 10.8 billion project and contribute half a billion euros, leaving TSMC with a 70 per cent ownership. The German Federal Constitutional Court's decision to end prior financial uncertainty has resulted in the German government committing a USD 5.2 billion subsidy to sustain the project.
The European Semiconductor Manufacturing Corporation (ESMC), the joint venture's official name, is scheduled to start construction by the end of 2024 and go into production by the end of 2027. TSMC's 28nm, 22nm and 16nm/12nm CPUs will be produced in the Dresden fab, with a monthly production capacity of 40,000 300mm (12-inch) wafers. It is estimated that the facility would generate 2,000 high-tech professional employment.
The facility produces chips with a 22–28 nanometre and 12–16 nanometre grade that are in great demand for a variety of applications, including consumer electronics and automotive systems, even though it won't generate cutting-edge technology. This project comes after TSMC's earlier international forays, which included a USD 8 billion complex in Kumamoto, Japan, and a USD 40 billion factory in Arizona, USA.
