Construction of ESMC Dresden fab kicks off

ESMC, a joint venture between TSMC, Infineon, NXP and Robert Bosch, yesterday held a groundbreaking ceremony for its Dresden fab. The event coincided with the European Commission announcing formal approval of state aid for the project. Construction of the plant that will primarily focus on manufacturing automotive chips has been estimated to cost 10 billion euros, of which the German government will cover half.

“European chip companies will gain access to new technologies and production capacities. European industries will benefit from more reliable local supply chains and new products tailored to their needs. And at a time of growing geopolitical tensions, TSMC will also benefit from geographic diversification to Europe and better access to our European strengths. So this is a true win-win situation for all of us,” comments European Commission President Ursula von der Leyen.

Following her re-appointment this summer, Von der Leyen announced a European Competitiveness Fund for collective European investments in strategic technologies, including microelectronics.