TSMC, Bosch, Infineon and NXP invest €10B to strengthen Europe’s semiconductor manufacturing ecosystem

10 Aug 2023 --- TSMC, Robert Bosch (Bosch), Infineon Technologies and NXP Semiconductors are jointly investing in European Semiconductor Manufacturing Company (ESMC), in Dresden, Germany to provide advanced semiconductor manufacturing services.

With ESMC, the partnering companies aim to construct a 300 mm fabrication to support the fast-growing automotive and industrial sectors.

“Europe is a promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe,” says Dr. CC Wei, TSMC’s CEO.

Boosting European tech
ESMC aims to begin the fabrication’s construction in the second half of 2024, with production targeted to begin by the end of 2027.

The planned fabrication is expected to have a monthly production capacity of 40,000 300 mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology. The fabrication is said to further strengthen Europe’s semiconductor manufacturing ecosystem with advanced FinFET transistor technology and creating 2,000 direct high-tech professional jobs. 

ESMC aims to begin the fabrication’s construction in the second half of 2024.The planned joint venture will be 70% owned by TSMC, with Bosch, Infineon and NXP each holding a 10% equity stake, subject to regulatory approvals and other conditions. Total investments are expected to exceed €10 billion (US$11 billion), consisting of equity injection, debt borrowing and support from the EU and the German government. TSMC will operate the fabrication.

Dr. Stefan Hartung, chairman of the Bosch board of management, comments: “Semiconductors are not only a crucial success factor for Bosch. Their reliable availability is also of great importance for the success of the global automotive industry.” 

“Apart from continuously expanding our manufacturing facilities, we further secure our supply chains as an automotive supplier through close cooperation with our partners. With TSMC, we are pleased to gain a global innovation leader to strengthen the semiconductor ecosystem in the direct vicinity of our semiconductor plant in Dresden.”

Semiconductor ecosystem 
Jochen Hanebeck, CEO at Infineon Technologies says that the joint investment is an important milestone to bolster the European semiconductor ecosystem. “With this, Dresden is strengthening its position as one of the world’s most important semiconductor hubs already home to Infineon’s largest frontend site.” 

“Infineon will use the new capacity to serve the growing demand, particularly of its European customers, especially in automotive and IoT. The advanced capabilities will provide a basis for developing innovative technologies, products and solutions to address the global challenges of decarbonization and digitalization.”

“The construction of this new and significant semiconductor foundry will add much-needed innovation and capacity for the range of silicon required to supply the sharply increasing digitalization and electrification of the automotive and industrial sectors,” adds Kurt Sievers, president and CEO of NXP Semiconductors.

Earlier this month, TSMC invested nearly NT$90 billion (US$2.9 billion) to build an advanced chip packaging plant in Taiwan amid booming global demand, and Samsung Electronics launched an alliance for next-generation packaging technology. 

Meanwhile, Silicon Box, a Singapore-based semiconductor integration start-up, launched its US$2 billion advanced semiconductor manufacturing foundry to “revolutionize” the chip manufacturing sector, reduce packaging size, build local jobs and boost Singapore’s position as a global hub for semiconductor manufacturing.

Edited by Natalie Schwertheim