Microelectronics

TSMC, Bosch, Infineon and NXP: Planned joint venture brings advanced semiconductor manufacturing to Europe

August 8, 2023. TSMC, Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors N.V. announced today that they will jointly invest in the joint venture “European Semiconductor Manufacturing Company (ESMC) GmbH” in Dresden. The aim is to build a modern 300-millimeter fab for semiconductor manufacturing to meet the future capacity needs of the fast-growing automotive and industrial sectors. The final investment decision will be made when the scope of public funding for the project is confirmed. The project is planned within the framework of the European Chips Act.

Share this Post
Interior view of a semiconductor fab. Photo: Bosch

Contact info

Silicon Saxony

Marketing, Kommunikation und Öffentlichkeitsarbeit

Manfred-von-Ardenne-Ring 20 F

Telefon: +49 351 8925 886

Fax: +49 351 8925 889

redaktion@silicon-saxony.de

Contact person:

The planned fab is expected to have a monthly manufacturing capacity of 40,000 300-millimeter (12-inch) wafers on TSMC’s 28/22-nanometer planar CMOS and 16/12-nanometer FinFET process technology. The joint venture will further strengthen the European semiconductor ecosystem with advanced FinFET transistor technology and create approximately 2,000 new and highly skilled jobs. ESMC aims to begin construction of the fab in the second half of 2024 and begin manufacturing by the end of 2027.

TSMC will own 70 percent of the proposed joint venture; Bosch, Infineon and NXP will each own ten percent, subject to regulatory approvals and other conditions. Total investment is expected to exceed ten billion euros and will consist of equity injection, borrowing and significant support from the European Union and the German government. TSMC will operationally operate the new fab.

“This investment in Dresden underscores TSMC’s commitment to meeting the strategic capacity and technology needs of our customers, and we are excited about the opportunity to deepen our long-standing partnership with Bosch, Infineon and NXP,” said Dr. CC Wei, chief executive officer of TSMC. “Europe is an extremely promising location for semiconductor innovation, especially in the automotive and industrial sectors, and we look forward to bringing these innovations to life based on our advanced silicon technology and the talent in Europe.”

” Semiconductors are not only a decisive success factor for Bosch. Their reliable availability is also of great importance for the success of the global automotive industry. In addition to the continuous expansion of our own manufacturing operations, we further secure our supply chains as an automotive supplier through close cooperation with our partners. We are pleased to have TSMC, a global innovation leader, join us to strengthen the semiconductor ecosystem in the direct vicinity of our semiconductor plant in Dresden,” said Dr. Stefan Hartung, chairman of the board of management of Robert Bosch GmbH

“Our joint investment is an important milestone to strengthen the European semiconductor ecosystem. It further strengthens Dresden’s position as one of the world’s most important semiconductor centers, where Infineon’s largest front-end site is already located,” said Jochen Hanebeck, CEO of Infineon Technologies AG. “Infineon will use the new capabilities to serve the growing demand, especially from its European customers – particularly in the automotive and IoT sectors. These advanced capabilities will be the foundation for the development of innovative technologies, products and solutions to address the global challenges of decarbonization and digitalization.”

“NXP is determined to make a significant commitment to strengthening innovation and improving supply chain resilience in Europe,” said Kurt Sievers, president and CEO of NXP Semiconductors. “We thank the European Union, the Federal Republic of Germany and the Free State of Saxony for recognizing the semiconductor industry as a strategically important industrial sector and for their strong commitment to strengthening the European semiconductor ecosystem. The construction of this new, highly relevant semiconductor foundry will provide much-needed production capacity to meet the rapidly growing needs of the automotive and industrial sectors for digitalization and electrification, and unlock new innovation potential.”

About Infineon

Infineon Technologies AG is a leading global provider of semiconductor solutions for power systems and the Internet of Things (IoT). With its products and solutions, Infineon is driving decarbonization and digitalization. The company has around 56,200 employees worldwide and generated revenues of around €14.2 billion in the 2022 fiscal year (ending September). Infineon is listed in Frankfurt under the symbol “IFX” and in the U.S. on the OTCQX International over-the-counter market under the symbol “IFNNY.” For more information, visit www.infineon.com. Follow us: Twitter – Facebook – LinkedIn

About NXP Semiconductors

NXP Semiconductors N.V. (NASDAQ: NXPI) brings together bright minds to develop groundbreaking technologies that make the connected world better, more reliable and more secure. As a global leader in solutions for secure communications in embedded applications, NXP drives innovation in automotive, industrial & IoT, mobile device and communications infrastructure applications, and promotes a more sustainable future with its solutions. Drawing on more than 60 years of experience and expertise, the company employs approximately 34,500 people in more than 30 countries and had revenues of $13.21 billion in 2022.

About TSMC

TSMC is a pioneer of the pure-play foundry business model, which was launched in 1987 with TSMC’s founding, and has since become the world’s leading dedicated semiconductor foundry. With industry-leading process technologies and a portfolio of design enablement solutions, the company supports a thriving ecosystem of global customers and partners to unleash the potential for innovation in the global semiconductor industry. TSMC is a globally engaged company with operations in Asia, Europe and North America.

In 2022, TSMC deployed 288 different process technologies and manufactured 12,698 products for 532 customers by offering a wide range of advanced process technologies and advanced specialty and packaging technologies. The company is headquartered in Hsinchu, Taiwan.

– – – –

Further links

👉 www.bosch.de 
👉 www.infineon.com
👉 www.nxp.com  
👉 www.tsmc.com

Photograph: Bosch