- The Dresden chip manufacturing facility serves as a pioneer in the European Union's endeavors to innovate a novel technique for chip fabrication.
Marking the commencement of construction with a symbolic ceremony, the European branch of renowned semiconductor giant TSMC has been launched. "The biggest microchip manufacturer globally is setting foot on our continent, teaming up with three European powerhouses," noted European Commission President Ursula von der Leyen during the event in Dresden.
The collaboration between TSMC and Dresden-based industry titans, Bosch, Infineon, and NXP Semiconductor, involves an approximately ten billion euro investment. TSMC will maintain a 70 percent stake in the company, with each of the partners holding a 10 percent share. The facility will be known as European Semiconductor Manufacturing Company (ESMC). The German Federal Ministry of Economics will contribute five billion euros to support the project.
Beyond the benefits for Dresden and Saxony, von der Leyen underscored, the entire European industry will experience enhanced reliability in supply chains and access to products tailored to its specific needs. "In an age of escalating geopolitical confrontations, TSMC will also gain from geographical diversification to Europe," she stressed.
Scholz expresses delight with the decision
"We're thrilled to host a significant player in the worldwide semiconductor market right here with us," stated German Chancellor Olaf Scholz (SPD) during the ceremony. Semiconductors serve as the lifeblood of the 21st century, with technological advancements shaping economies specifically around two key trends: universal digitization of our daily lives and the shift away from fossil energy resources.
With the new factory in Dresden, TSMC aims to meet the escalating semiconductor demands of the rapidly expanding European automotive and industrial sectors. "By assembling this cutting-edge production facility in Europe, we'll be able to provide our European clients and partners with TSMC's groundbreaking manufacturing techniques much more conveniently," shared TSMC CEO C. C. Wei.
Production is slated to begin in 2027, with a primary emphasis on auto-industry chips. The debut TSMC factory in Europe is projected to yield 2,000 new jobs.
TSMC's expansion to Europe, as demonstrated by the launch of its operation in Germany, will not only benefit Dresden and Saxony but also provide geographical diversification for the global semiconductor giant.
The European Semiconductor Manufacturing Company, a collaborative venture between TSMC and Dresden-based companies, will significantly contribute to the enhancement of supply chain reliability and the provision of tailored semiconductor products for European industries.
