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TSMC holds groundbreaking ceremony for German factory

2024-08-21

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Reference News reported on August 21 According to a report on Taiwan's Economic Daily website on August 20, the European Semiconductor Manufacturing Company (ESMC), a joint venture between wafer foundry leader TSMC and European companies Bosch, Infineon, and NXP, held a wafer factory "groundbreaking ceremony" in Dresden, Germany on the 20th. This will be TSMC's first European factory.

According to reports, the ceremony was hosted by TSMC Chairman Wei Zhejia, and attended by German Chancellor Scholz, European Commission President von der Leyen and others. The latter announced in his speech at the ceremony that the project would be subsidized by approximately 5 billion euros (1 euro is approximately 7.93 yuan - this website note).

According to reports, in August 2023, TSMC, Bosch, Infineon, and NXP jointly announced the establishment of ESMC and promoted the plan to build a factory in Germany, with TSMC holding 70% of the shares and the other three holding about 10% of the shares respectively. The factory is expected to use TSMC's 22/28nm and 12/16nm process technologies.

According to reports, the total investment in the German plant exceeds 10 billion euros and is expected to start production at the end of 2027. In the future, the plant will be operated by TSMC, mainly targeting the automotive and industrial market needs.