European Semiconductor Manufacturing Company (ESMC) is a joint venture between TSMC, Bosch, Infineon and NXP to establish an advanced semiconductor fab in Dresden, Saxony, Germany. It marks a significant step towards supporting the future capacity needs of the fast-growing automotive, industrial, IoT and telecommunications market sectors in Europe. The fab will be of strategic importance in strengthening the European semiconductor ecosystem and unleashing innovation.
ESMC will initially focus on 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology. It will develop technology variants with a special focus on innovative differentiating technologies like automotive applications, embedded flash, RRAM, MRAM, Radio Frequency (RF) and other non-volatile memories. TSMC will operate the fab according to the foundry business model, ensuring openness to customers beyond Bosch, Infineon and NXP and focusing on collaboration rather than competition. ESMC will be the first and so far, only pure play foundry to establish a sustainable mass production with FinFET capability on EU soil.
Construction of the fab is set to begin in the second half of 2024, with production targeted to begin in late 2027. The fab will be designed for a capacity of 480,000 wafers per year and create nearly 2,000 direct high-tech professional jobs when full capacity is reached. In addition, every 1 direct job hired by the project is expected to create many indirect jobs across the EU supply chain. Total investments are expected to exceed 10 billion euros.
The chips manufactured by ESMC in Dresden will help to bring TSMC’s cutting-edge semiconductor technology closer to the European market. As the first of its kind in Germany, ESMC will contribute to the growth and competitiveness of the technology industry in Europe. It will fuel technological progress across various sectors, foster intercultural exchange and drive economic development in the region.
ESMC aims to lead in technology and foundry services, partnering with fabless companies and IDMs. Guided by TSMC's core values of Integrity, Commitment, Innovation, and Customer Trust, ESMC is dedicated to supporting the global semiconductor industry.