Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chipmaker, has confirmed its plans to begin construction on its first European chip plant in Dresden, Germany, in the fourth quarter of 2024, as announced at a conference in the Netherlands and reported by Reuters. The facility, known as European Semiconductor Manufacturing Co (ESMC), is a joint venture with Infineon, NXP, and Robert Bosch, with each holding a 10% stake, and is expected to commence production in 2027.
The $11 billion investment has garnered strong backing from both the European Union and the German government, with TSMC confident in securing subsidies under the European Chips Act, according to Kevin Zhang, TSMC’s Senior Vice President of Business Development and Overseas Operations Office. This move into Europe, TSMC’s European chief Paul de Bot stated, is an “exciting time for (the) European Semiconductor ecosystem,” allowing TSMC to bring “the most advanced MCU technology to the heartland of automotive use.”
Initially, the Dresden fab will focus on the 22-nanometer process node, primarily producing automotive microcontrollers, as outlined in a TrendForce report. However, Zhang did not rule out future expansion to produce more advanced chips in Europe, mirroring TSMC’s approach in Japan, where it recently announced plans for a second, more advanced plant.
This expansion into Europe is part of TSMC’s broader global strategy to become a “long-term and trustworthy provider of technology and capacity.” According to TrendForce, TSMC’s global reach now extends to China, the United States, Japan, and Germany. However, the company’s ambitious plans have not been without setbacks. The construction of its Arizona plant in the United States has been delayed, impacting the production timeline for both the first and second phases.
Despite these challenges, TSMC remains committed to its growth trajectory. It continues to advance its most cutting-edge processes and packaging technologies in Taiwan, while simultaneously expanding its global footprint. This multi-faceted approach reflects TSMC’s determination to meet the ever-growing demand for semiconductors and maintain its position as a global leader in the industry.
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