(Finance) – The Taiwanese chipmaker TSMC extension announced a investment of 3.5 billion euros for the construction of his first European plant, in Germany. In particular, TSMC, Bosch, Infineon And NXP Semiconductors envisage a joint investment in European Semiconductor Manufacturing Company (ESMC extension), based in Dresden, to provide advanced semiconductor manufacturing services.
ESMC marks “a significant step towards the construction of a 300mm factory to support the future capacity needs of the rapidly growing automotive and industrial sectors, with the final investment decision pending confirmation of the level of public funding for this project” , reads a note. The project is planned under the European Chips Act.
TSMC expects the factory to create approximately 2,000 direct high-tech professional jobs. ESMC aims to start construction of the factory in the second half of 2024, with thestart of production by the end of 2027.
The planned joint venture will be 70% owned by TSMC, with Bosch, Infineon and NXP each holding a 10% stake, subject to regulatory approvals and other conditions. Total investments are expected to exceed €10 billion consisting of capital injection, debt and strong support from the European Union and the German government. The fab will be managed by TSMC.
“This investment in Dresden demonstrates TSMC’s commitment to serving the strategic capabilities and technology needs of our customers, and we are excited about this opportunity to deepen our long-standing partnerships with Bosch, Infineon and NXP,” said CC Wei, TSMC Chief Executive Officer – Europe is a very promising location for semiconductor innovationespecially in the automotive and industrial sectors, and we look forward to bringing such innovations to life on our advanced silicon technology with talent in Europe.”