The project, named European Semiconductor Manufacturing Company (ESMC), brings together TSMC, Bosch, Infineon, and NXP. TSMC will own 70% of the venture, with the other three companies each holding 10%.
The groundbreaking ceremony marks the start of a journey that will see actual construction begin at the end of 2024. The factory will start producing chips by the end of 2027.
The total investment for the project will reach 10 billion euros. The German government will contribute up to 5 billion euros, while TSMC will invest 3.5 billion euros. Bosch, Infineon, and NXP will each put in 500 million euros. The funding will come from a mix of equity, debt, and subsidies from the EU and German government.
Once up and running, the factory will produce 40,000 300mm wafers monthly by 2029. It will focus on 12 to 28mm nodes, targeting the German and European markets. The project will create around 2,000 direct jobs.
This new factory is a big deal for Europe's tech industry. It's part of the European Chips Act, which aims to boost Europe's share of global semiconductor production to 20% by 2030. The Act relaxes state aid rules to attract more chip production to the continent.
The project will help Europe reduce its reliance on chip imports from Asia and the USA. It will strengthen the supply of innovative chips, create high-tech jobs, and boost competitiveness.
Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, shared his excitement about the project:
"Now we can get started soon! Germany can look forward to a new, state-of-the-art chip factory that will strengthen the supply of innovative chips in Germany and Europe, address the existing and future needs of user industries and create thousands of high-tech jobs."
The Dresden factory will play a crucial role in closing gaps in European semiconductor production. It will focus on making chips for the automotive and industrial sectors, helping to secure Europe's technological sovereignty.
Sources: tagesschau, bmwk, europa.eu
