TSMC To Begin Construction Of Its European Chip Plant

As a part of its long-anticipated European expansion, TSMC is set to inaugurate its new manufacturing facility in Germany on August 20, with Chairman C.C. Wei hosting the ceremony.

Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to hold the inauguration ceremony for its European Semiconductor Manufacturing Corporation (ESMC) fab in Dresden, Germany, on August 20. According to reports, the Chairman of the Taiwanese chip giant, C.C. Wei, will host the event.

TSMC’s expansion in Europe involves substantial investment, with Infineon, Bosch, and NXP each contributing €500 million for a 10% stake in the $10.8 billion venture.

The new facility, named ESMC, is set to commence operations by late 2027. According to TSMC, the project is progressing as scheduled, with construction expected to begin by the end of 2024.

ESMC will be located next to Bosch’s existing fab, and Infineon is also constructing a mature process fab in Dresden. It will be designed to handle production processes of 28nm, 22nm, 16nm, and 12nm and is expected to achieve a capacity of 40,000 wafers per month.

- Advertisement -

Earlier in May, Paul de Bot, President of TSMC Europe, announced at a seminar in the Netherlands that TSMC would commence construction of its first European chip plant in the fourth quarter of this year.  The joint venture project, unveiled in August 2023, had a planned $11 billion investment with TSMC and its other three stakeholders.

According to a report by Reuters, Kevin Zhang, TSMC’s Senior Vice President of Business Development, noted that the project had garnered strong backing from the European Union and the German government, enhancing TSMC’s prospects of securing subsidies under the European Chips Act.

Zhang also highlighted the burgeoning semiconductor ecosystem in Europe, and establishing a foundry in Germany would enable TSMC to better serve its major automotive clients directly.

This inauguration event next month marks a significant milestone for TSMC and its investment partners in the European semiconductor industry, enhancing its global market position.

- Advertisement -
Loading form…
Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

Industry's Buzz

Semiconductor manufacturing

Sancode Acquires Cirtek for $20.2m to Boost Semiconductor Plant

0
The firm buys Philippines-based OSAT provider to bolster packaging capabilities and accelerate its Odisha manufacturing facility. Sancode Semi is set to acquire 100 per cent...
Semiconductor Chip (Representation Image)

MP Attracts ₹58 Billion in Semiconductor and Technology Investment Proposals

0
The state is also seeking to attract semiconductor investments through its Madhya Pradesh Semiconductor Policy 2025 Madhya Pradesh has received investment proposals worth around ₹5,800...

STPI Inaugurates 30,000 Sq. Ft. Incubation Facility in Dehradun

0
STPI Dehradun has also supported startup development through the Next Generation Incubation Scheme (NGIS). Software Technology Parks of India (STPI), under the Ministry of Electronics...

India’s Emerging Sectors to Shift Capex and Credit Towards Semiconductors

0
The Union Bank report identifies a $55.5bn semiconductor pipeline as banks pivot financing models towards high-tech supply chains and advanced packaging. Financing demand across India's...
BEL

BEL Plans INR 2500 Crore Defence Ecosystem in Andhra Pradesh

0
BEL’s ₹2500 crore defence investment in Andhra Pradesh could expand the regional supplier ecosystem, create 800 jobs and open potential opportunities for defence electronics...

Learn From Leaders

Pravin Patel, Founder and Chairman, Brio Agri, India

“Our goal is not to replace farmers, but to empower them with better tools,...

0
In an exclusive interaction with EFY's Saba Aafreen, Pravin Patel, Founder and Chairman of Brio Agri, discusses building hydroponics and controlled-environment agriculture in India,...

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...
Jin Bains, CEO, Mini-Circuits

Mini-Circuits CEO Jin Bains on Navigating High-Frequency Component SWaP-C Constraints, Emerging Markets, and Career...

0
In this exclusive, Jin Bains, Chief Executive Officer (CEO) of Mini-Circuits, explains in a conversation with Dilin Anand of EFY about areas of emerging...

Startups

Pranay Rebala, Vice President of Product, BluJ Aerospace

“Rather Than Waiting For The Technology To Mature, We Are Ready For The Next...

0
Can battery-electric and hydrogen propulsion coexist in future VTOL aircraft? BluJ Aerospace sees complementary roles for both, with batteries powering shorter-range flights and hydrogen...

UST Selects 19 Startups for D3 Startup Challenge 2026 in Bengaluru

0
The programme is designed to identify technologies that address business challenges, assess their practical applications and determine their potential to scale UST, an AI and...

Compcarta Reduces The Cost And Complexity Of End-To-End Chip Design

0
Building a chip should not require assembling an entire design ecosystem. A Noida-based startup is developing a browser-based EDA platform that aims to reduce...

Aquaexchange Brings Monitoring And Automation To Shrimp Farming

0
The startup has developed an AI- and IoT-enabled platform that helps shrimp farmers manage farms, access financing, monitor operations, and connect with markets. The startup...

Drone-Like Aircraft For Logistics From BluJ Aerospace

0
Hyderabad-based BluJ Aerospace is developing indigenous electric and hydrogen-powered vertical take-off and landing (VTOL) aircraft for remote cargo transport. BluJ Aerospace, a Hyderabad-based aerospace startup...