ESMC breaks ground on its Dresden foundry

2024-08-20 · Publisher : ESMC (TSMC, Bosch, Infineon, NXP) · Domain : Industry 4.0 & 5.0

On 20 August 2024, ESMC, TSMC's joint venture with Bosch, Infineon and NXP, breaks ground on its Dresden foundry, the very day Brussels clears €5bn of German aid for the roughly €10bn project.

What changes

TSMC owns 70% of ESMC; Bosch, Infineon and NXP 10% each.
The European Commission approves €5bn in state aid, half of an estimated €10bn cost.
The foundry will produce at 28/22 nm and 16/12 nm for automotive and industrial uses.
Production targeted for late 2027, full capacity in 2029 with 40,000 wafers a month.

### What changes On 20 August 2024, the **European Semiconductor Manufacturing Company (ESMC)** holds the groundbreaking ceremony of its **Dresden** foundry, which Chancellor Olaf Scholz and Ursula von der Leyen were expected to attend. The same day, the European Commission clears Germany's aid for the project. ### Key facts - Ownership: **TSMC 70%**, Bosch, Infineon and NXP **10%** each; TSMC operates the site. - Approved state aid: **€5bn**, half of an estimated cost of about €10bn. - Target nodes: 28/22 nm and 16/12 nm FinFET for automotive and industrial uses, not leading-edge compute. - Announced schedule: production by late 2027, full capacity in 2029 with **40,000 wafer starts per month**. - ESMC will run as an open foundry, including for European SMEs and universities. ### Why it matters The 2021 shortages showed that "mature" components (microcontrollers, power chips, sensors) are enough to stop entire car lines. Dresden brings this production closer to European suppliers and strengthens the Silicon Saxony cluster, where Europe needs volumes more than record-breaking nodes. ### Takeaway TSMC's first European site, designed to secure supply for industry and automotive, with 50% public funding.

ESMC breaks ground on its Dresden foundry

What changes

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