ESMC breaks ground on Dresden fab

ESMC – a jv between TSMC, Bosch, Infineon and NXP – broke ground for its first fab in Dresden yesterday, with the EU announcing it had approved a €5 billion subsidy from the German government for the €10 billion project.

”Together with our partners, Bosch, Infineon and NXP, we are building our Dresden facility to meet the semiconductor needs of the rapidly growing European automotive and industrial sectors,” said TSMC Chairman & CEO C.C. Wei (pictured) “with this state-of-the-art manufacturing facility, we will bring TSMC’s advanced manufacturing capabilities within reach of our European customers and partners, which will stimulate economic development within the region and drive technological advancements across Europe.”

When fully operational, ESMC is expected to have a monthly production capacity of 40,000 300mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology.

The fab is expected to generate around 2,000 direct high-tech professional jobs. Additionally, each direct job created by the project is expected to stimulate the creation of numerous indirect jobs throughout the EU supply chain.

ESMC is constructing a green fab that uses techniques to optimize conservation. This includes energy-efficient construction, water reclamation, and obtaining LEED certification. Construction is expected to start later this year.

“The ESMC wafer fab is to be built right next door to our own Bosch wafer fab in Dresden. So now we will be able to watch it emerge and grow with our own eyes,” said Dr. Stefan Hartung, chairman of Bosch.

Bosch, Infineon and NXP each put up €500 million for a 10% stake in ESMC. TSMC will own 70% of the company.