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Major Semiconductor Industry Players to Collaborate on European Manufacturing Hub: TSMC, Bosch, Infineon, and NXP Join Forces for Advanced Semiconductor Manufacturing

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Four major players in the semiconductor industry – TSMC, Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors N.V. – recently announced a strategic collaboration to invest in European Semiconductor Manufacturing Company GmbH (ESMC) GmbH located in Dresden, Germany. This initiative marks a step toward building a leading-edge 300mm fabrication facility designed to meet rapidly rising automotive and industrial capacity requirements. Final confirmation of public funding through European Chips Act framework may determine final decision on investment decisions.

This new facility, planned to boast a monthly production capacity of 40,000 300mm wafers, will use TSMC’s cutting-edge semiconductor technologies such as 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology to strengthen Europe’s semiconductor manufacturing ecosystem and introduce advanced FinFET transistor technology. Construction on this fab is scheduled to commence by late 2024 with production expected to commence sometime before the end of 2027.

TSMC will hold a majority stake with 70 percent ownership, while Bosch, Infineon and NXP each hold 10% equity stake, subject to regulatory approvals. Total investments are projected to surpass 10 billion euros including equity injection, debt borrowing, substantial support from both the European Union and German government as well as management by TSMC for its operations center fab.

Dr. CC Wei, CEO of TSMC, stressed the company’s dedication to satisfying customers’ strategic and technological requirements, with Bosch, Infineon and NXP being key partners. Dr. Wei highlighted Europe’s potential as a hub for semiconductor innovation – particularly automotive and industrial applications – and expressed enthusiasm about turning these innovations into reality using advanced silicon technology in collaboration with European talent.

Dr. Stefan Hartung, Chairman of Bosch Board of Management, stressed the significance of semiconductors to Bosch and global automotive industry success. Bosch sees its partnership with TSMC as an avenue to secure supply chains and expand the semiconductor ecosystem nearby its semiconductor plant in Dresden.

Jochen Hanebeck, CEO of Infineon Technologies, highlighted the significance of their joint investment as essential in strengthening Europe’s semiconductor ecosystem. Dresden will benefit further as an essential semiconductor hub and Infineon is well positioned to meet rising customer needs across automotive and IoT domains with additional capacities available at their new fab that are anticipated to drive innovative technological development solutions that address global issues.

Kurt Sievers, President and CEO of NXP Semiconductors, expressed the company’s dedication to innovation and supply chain resilience throughout Europe. He acknowledged the support from European Union institutions, Germany, and Free State of Saxony that recognizes the critical role semiconductor industry plays. In particular, he highlighted how essential NXP’s new semiconductor foundry is for meeting rising digitalization/electrification demands across various industrial sectors such as automotive.

This collaborative venture emphasizes the value of cross-industry cooperation to strengthen Europe’s semiconductor ecosystem, tackle technical challenges and foster innovation.

Michal Pukala
Electronics and Telecommunications engineer with Electro-energetics Master degree graduation. Lightning designer experienced engineer. Currently working in IT industry.