In an epoch-making announcement, global tech heavyweights TSMC, Bosch, Infineon Technologies and NXP Semiconductors have declared a strategic alliance to invest in European Semiconductor Manufacturing Company (ESMC). The intent? A state-of-the-art 300mm fabrication plant in Dresden, Germany.
Think of this as a quantum leap in Europe semiconductor manufacturing landscape. The new fab will leverage TSMC’s advanced 28/22nm planar CMOS and 16/12nm FinFET process technology, addressing the burgeoning capacity needs of the automotive and industrial sectors. With a projected output of 40,000 300mm wafers monthly by end of 2027 and creating 2,000 direct jobs, the potential economic and technological impact is monumental.
TSMC, with 70% stake in the joint venture, leads the consortium, while Bosch, Infineon, and NXP each hold 10% equity shares. The total investment, exceeding 10 billion euros, receives a firm backing from the European Union and the German government.
Here are three takeaways for investors:
1. This venture underscores Europe's accelerating strive for semiconductor independence, enhancing its competitiveness in global markets.
2. The new fab brings advanced FinFET transistor technology, offering cutting-edge solutions for the automotive and industrial sectors, opening new avenues for innovation and market growth.
3. The creation of direct jobs and potential indirect employment opportunities will stimulate the local economy, which in turn can drive more investments in the region.
In the words of Dr. CC Wei, CEO of TSMC, "This investment in Dresden demonstrates TSMC’s commitment to serving our customers’ strategic capacity and technology needs”. As we witness the dawn of this groundbreaking venture, we invite you to explore the vast market opportunities ahead. Connect with us at Market Unwinded. Here's to the future of semiconductor manufacturing!
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