- New endeavor strives to sustainably bolster Europe's capacity in semiconductor technology
The initial venture of Taiwanese semiconductor behemoth TSMC in Europe is taking shape. The significant groundbreaking ceremony on Tuesday, with German Chancellor Olaf Scholz (SPD) in attendance, will also launch a pivotal project under the European Chips Act (Chips Act). To achieve this, TSMC will team up with established Dresden companies like Bosch, Infineon, and NXP Semiconductor. TSMC will own 70% of the joint venture, while each partner will hold 10%. The venture will be named European Semiconductor Manufacturing Company (ESMC). Production is expected to commence in 2027, with a primary focus on automotive chips. The investment sum stands at ten billion euros, with half coming from the state. Approximately 2,000 new jobs are anticipated.
ESMC President: Something Grand is Commencing
"With the groundbreaking, one chapter doesn't close, but a grand one is beginning," stated ESMC President Christian Koitzsch. The project aligns with Europe's microelectronics strategy. The Chips Act aims to bolster microelectronics manufacturing. With TSMC, we secure a formidable technological matriarch and robust local partners in Bosch, Infineon, and NXP Semiconductor, who have excelled with TSMC for years, particularly in Europe's strong automotive sector.
The EU's Chips Act targets strengthening the entire system. Consequently, ESMC will also operate a University Outreach Program, highlighted the manager. Future doctoral candidates can develop their chip designs using the TSMC technology node and produce corresponding prototypes in Dresden. Similarly, the burgeoning startup community will benefit from the state-of-the-art factory moving to Dresden.
TSMC's New Chip Plant to Treat Natural Resources Considerately
"Since Taiwan's island status and microelectronics' importance in recent decades, TSMC has made significant strides in efficiently managing natural resources. Microelectronics is energy and water-intensive. TSMC thrives globally in both aspects, handling natural resources responsibly," said Koitzsch. The Dresden plant can emulate these standards. It will operate with green energy, much like plants in Arizona, USA, and Japan.
As per Koitzsch, the entire microelectronics value chain requires bolstering. "Europe needs to close the gap, not just in manufacturing but also in the upstream value creation stages." This isn't limited to Saxony and Germany but refers to an entire European mission. "I have no doubt that our neighboring countries, Poland and Czech Republic, will also profit from this." Czech Prime Minister Petr Fiala recently expressed hope that his country could also contribute. It's not about relocating laborers as daily commuters to Dresden, but about integrating Czech companies into supply chains.
The EU aims to generate around 45 billion euros for European microelectronics via the "European Chips Act" by 2030. This includes funding for research, pilot projects, and startups. Additionally, the construction of megafabs for microchip production is planned. The objective is to double the European share of the global market from its current 10%. The European Chips Act is also expected to attract added public and private investments exceeding 15 billion euros.
The partnership between TSMC and Bosch in the ESMC venture will be instrumental in creating cutting-edge automotive chips, leveraging Bosch's expertise in this field.
The new European Semiconductor Manufacturing Company (ESMC) will adhere to TSMC's sustainable practices, ensuring that the Dresden plant utilizes green energy, much like its facilities in Arizona and Japan.
