TSMC’s eurofab construction is on target

Construction of TSMC’s fab co-owned by NXP and other European chipmakers is on track to start in the fourth quarter of 2024, the foundry told reporters on Tuesday. “It’s a very exciting time for the European Semiconductor ecosystem, with TSMC coming directly to the backyard of major automotive customers,” TSMC’s Senior Vice President Business Development Kevin Zhang said of the facility that will be built in Dresden, Germany. Production is scheduled to start in 2027.

The European Semiconductor Manufacturing Co (ESMC) was announced in August last year. NXP, Infineon and Robert Bosch agreed to each take a 10-percent stake in the foundry that will manufacture 28/22nm planar and 16/12nm FinFET CMOS, primarily for automotive purposes. The total cost of the chip plant is reported to be 10 billion euros, of which the German government is said to cover half. The subsidies haven’t yet received formal approval.