Bosch and Infineon: Cartel Office approves factory investment
The German Federal Cartel Office has approved the planned participation of automotive supplier Bosch and chip manufacturers Infineon and NXP in a new billion-euro semiconductor factory in Dresden. The three companies may each acquire 10 percent of the shares in the European Semiconductor Manufacturing Company (ESMC) founded by the Taiwanese chip group TSMC, as the federal authority announced in Bonn on Tuesday. TSMC will hold 70 percent of the company in future.
"The geopolitical upheavals of the recent past have shown how important secure access to semiconductors is, especially for German industry," said Andreas Mundt, head of the authority. He does not believe that competition will be affected and that the investments are "fully compliant with merger control regulations". The technology companies Bosch from Baden-Württemberg, Infineon from Bavaria and NXP from the Netherlands need large quantities of chips for their products, some of which they build themselves and some of which they obtain from contract manufacturers such as TSMC.
The ground-breaking ceremony for the new factory, which is also being made possible thanks to extensive subsidies, is scheduled to take place in the second half of 2024, with production expected to start in 2027. Most of the chips manufactured in Dresden will probably be used in cars.
The investments in the ESMC by Bosch, Infineon, and NXP will significantly enhance their capabilities in telecommunications, as semiconductors play a crucial role in the development of 5G and other advanced communication technologies. Despite the looming threat of chip shortages, the companies can rely on a secure supply of semiconductors through their partnership with TSMC, ensuring uninterrupted Internet connectivity for their products.
Source: www.dpa.com
