A significant stride toward establishing a 300 mm fab capable of supporting the future capacity demands of the automotive and industrial sectors has been made with the inception of the European Semiconductor Manufacturing Company (ESMC). The final investment decision is contingent upon confirming the level of public funding for this endeavor.
TSMC, Bosch, Infineon Technologies, and NXP Semiconductors have unveiled a joint investment plan in the European Semiconductor Manufacturing Company (ESMC), located in Dresden, Germany, with the aim of providing advanced semiconductor manufacturing services. ESMC represents a notable advancement towards constructing a 300 mm fabrication facility to address the future capacity requirements of the automotive and industrial fields. The ultimate investment determination awaits confirmation of public funding for this undertaking. The project is aligned with the European Chips Act framework.
"The intended fabrication facility is projected to possess a monthly production capacity of 40,000 300 mm (12-inch) wafers, utilizing TSMC's 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology. This will further fortify Europe's semiconductor manufacturing ecosystem through advanced FinFET transistor technology and is anticipated to generate approximately 2,000 direct high-tech professional jobs. ESMC envisions commencing the construction of the fabrication facility in the latter half of 2024, with production slated to commence by the close of 2027," according to a statement from Bosch.
The planned collaborative venture will be primarily owned by TSMC at 70%, with Bosch, Infineon, and NXP each possessing a 10% equity stake. The total investments are projected to exceed 10 billion euros, encompassing equity injection, debt borrowing, and substantial backing from the European Union and the German government. TSMC will operate the fabrication facility.
"Through this investment in Dresden, TSMC underscores its dedication to fulfilling the strategic capacity and technological requirements of our clients. We are thrilled to have the chance to deepen our longstanding partnership with Bosch, Infineon, and NXP," affirmed Dr. CC Wei, Chief Executive Officer of TSMC.
Dr. Stefan Hartung, Chairman of the Bosch Board of Management, commented, "Semiconductors are not only a vital success factor for Bosch, but their dependable availability is also pivotal for the global automotive sector's success. In addition to consistently expanding our own manufacturing facilities, we are enhancing the security of our supply chains as an automotive supplier through close collaboration with our partners."
Jochen Hanebeck, CEO of Infineon Technologies, stated, "Our joint investment represents a significant milestone in enhancing the European semiconductor ecosystem. The expanded capacity will cater to the escalating demands of our European clients, particularly in the automotive and IoT sectors. These advanced capabilities will serve as the foundation for developing innovative technologies, products, and solutions to address the global challenges of decarbonization and digitization."
Kurt Sievers, President and CEO of NXP Semiconductors, expressed, "We extend our gratitude to the European Union, Germany, and the Free State of Saxony for acknowledging the critical role of the semiconductor industry and for their true commitment to elevating Europe's chip ecosystem. The establishment of this new and substantial semiconductor foundry will contribute essential innovation and capacity for the spectrum of silicon required to meet the rapidly escalating digitalization and electrification of the automotive and industrial sectors."
