The European Semiconductor Manufacturing Company (ESMC), a joint venture between TSMC, Robert Bosch, Infineon Technologies, and NXP Semiconductors, has officially broken ground on its first semiconductor fabrication facility in Dresden, Germany. This new fab, the first in the EU capable of producing FinFET technology, marks a significant step forward for Europe’s semiconductor industry.
The groundbreaking event attracted key political figures, including European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz, underscoring the strategic importance of the project. The European Commission has approved a €5 billion German aid measure to support the construction and operation of the facility.
When operational, ESMC’s fab will have a monthly capacity of 40,000 wafers using TSMC’s advanced 28/22 nanometer and 16/12 nanometer FinFET process technologies. The total investment for the project is expected to exceed €10 billion, funded by equity, debt, and strong support from the EU and German government.
In addition to creating 2,000 direct high-tech jobs, the facility is anticipated to stimulate job growth across the EU supply chain. ESMC is committed to sustainability, with plans for a green fab that incorporates energy-efficient construction and water reclamation techniques.
This development solidifies Dresden, known as Silicon Saxony, as a hub for global semiconductor manufacturing and innovation.
