ESMC Breaks Ground on Dresden Fab

European Semiconductor Company (ESMC), a joint venture between Taiwan Semiconductor Company (TSMC), Robert Bosch GmbH, Infineon Technologies, and NXP Semiconductor N.V., has broken ground on its first semiconductor fab in Dresden, Germany.

During the ceremony, it was announced that the European Commission has approved, under European Union state aid rules, a €5 billion (~$5.6 billion) German measure to support ESMC in the construction and operation of the semiconductor fab.

When fully operational, ESMC 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 fin field-effect transistor (FinFET) process technology, further strengthening Europe’s semiconductor manufacturing ecosystem with advanced FinFET technology. Total investments are expected to exceed €10 billion, consisting of equity injection, debt borrowing, and support from the European Union and German government.

ESMC, established last August, is 70% owned by TSMC, with Bosch, Infineon, and NXP each holding a 10% equity stake. The fab will be operated by TSMC.