TSMC is Building a $10B Fab In Germany

[TheLostSwede]

TSMC (TWSE: 2330, NYSE: TSM), Robert Bosch GmbH, Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY), and NXP Semiconductors N.V. (NASDAQ: NXPI) today announced a plan to jointly invest in European Semiconductor Manufacturing Company (ESMC) GmbH, in Dresden, Germany to provide advanced semiconductor manufacturing services. ESMC marks a significant step towards construction of a 300 mm fab to support the future capacity needs of the fast-growing automotive and industrial sectors, with the final investment decision pending confirmation of the level of public funding for this project. The project is planned under the framework of the European Chips Act.

The planned fab is expected to have a monthly production capacity of 40,000 300 mm (12-inch) wafers on TSMC's 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology, further strengthening Europe's semiconductor manufacturing ecosystem with advanced FinFET transistor technology and creating about 2,000 direct high-tech professional jobs. ESMC aims to begin construction of the fab in the second half of 2024 with production targeted to begin by the end of 2027.




The planned joint venture will be 70% owned by TSMC, with Bosch, Infineon, and NXP each holding 10% equity stake, subject to regulatory approvals and other conditions. Total investments are expected to exceed 10 billion euros consisting of equity injection, debt borrowing, and strong support from the European Union and German government. The fab will be operated by TSMC.

"This investment in Dresden demonstrates TSMC's commitment to serving our customers' strategic capacity and technology needs, and we are excited at this opportunity to deepen our long-standing partnership with Bosch, Infineon, and NXP," said Dr. CC Wei, Chief Executive Officer of TSMC. "Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe."

Dr. Stefan Hartung, chairman of the Bosch board of management: "Semiconductors are not only a crucial success factor for Bosch. Their reliable availability is also of great importance for the success of the global automotive industry. Apart from continuously expanding our own manufacturing facilities, we further secure our supply chains as an automotive supplier through close cooperation with our partners. With TSMC, we are pleased to gain a global innovation leader to strengthen the semiconductor ecosystem in the direct vicinity of our semiconductor plant in Dresden."

"Our joint investment is an important milestone to bolster the European semiconductor ecosystem. With this, Dresden is strengthening its position as one of the worlds most important semiconductor hubs that is already home to Infineon's largest frontend site," said Jochen Hanebeck, CEO of Infineon Technologies. "Infineon will use the new capacity to serve the growing demand particularly of its European customers, especially in automotive and IoT. The advanced capabilities will provide a basis for developing innovative technologies, products and solutions to address the global challenges of decarbonization and digitalisation.

"NXP is very committed to strengthening innovation and supply chain resilience in Europe" said Kurt Sievers, President and CEO of NXP Semiconductors. "We thank the European Union, Germany, and the Free State of Saxony for their recognition of the semiconductor industry's critical role and for their true commitment to boost Europe's chip ecosystem. The construction of this new and significant semiconductor foundry will add much needed innovation and capacity for the range of silicon required to supply the sharply increasing digitalization and electrification of the automotive and industrial sectors."

View at TechPowerUp Main Site | Source

 

[PapaTaipei]

In Germany as per usual with the EU, every cool economic deal's go to DE while rest of EU gets nothing.

 

[ARF]

In Germany as per usual with the EU, every cool economic deal's go to DE while rest of EU gets nothing.

And still, this is a second-tier or third-tier manufacturing site, including GLOBALFOUNDRIES already has that fab for years already.

But yeah, the other countries don't get even that - they can manufacture the seats and cables...

Why don't they invest in the really poor countries, such as Niger, Africa - this is a country two times larger than France, and with population 25 million people?!

 

[KrazyT]

Why don't they invest in the really poor countries, such as Niger, Africa - this is a country two times larger than France, and with population 25 million people?!

Seems this part of Africa haven't good politics stability unfortunately :/
Can be a risky move to plant a plant D) there

 

[PapaTaipei]

And still, this is a second-tier or third-tier manufacturing site, including GLOBALFOUNDRIES already has that fab for years already.

But yeah, the other countries don't get even that - they can manufacture the seats and cables...

Why don't they invest in the really poor countries, such as Niger, Africa - this is a country two times larger than France, and with population 25 million people?!

I agree 100%.

 

[Deleted member 229121]

And still, this is a second-tier or third-tier manufacturing site, including GLOBALFOUNDRIES already has that fab for years already.

But yeah, the other countries don't get even that - they can manufacture the seats and cables...

Why don't they invest in the really poor countries, such as Niger, Africa - this is a country two times larger than France, and with population 25 million people?!

Considering Niger just had a coup and their freely elected president is currently being held captive...they're probably glad they didn't.

 

[PapaTaipei]

Considering Niger just had a coup and their freely elected president is currently being held captive...they're probably glad they didn't.

"Freely elected president" is the rhetoric of western media, noone else is using those words outside western media.

 

[Deleted member 229121]

As opposed to forcibly elected (negating the whole democratic process)? What is your point?

 

[Space Lynx]

when all these new chip plants get built, its going to be funny watching prices tank. I mean, I just bought a 13th gen Intel laptop for work, I expect it will last me 10-15 years pretty easily, since its just for basic work stuff. I guess a lot of people do produce e-waste though cause they always want something new and shiny. That's something every country should be forced to do imo, recycle e-waste needs to get much better... I doubt if it does though... humans are a throwaway mindset culture until its too late... lol

 

[ARF]

Seems this part of Africa haven't good politics stability unfortunately :/
Can be a risky move to plant a plant D) there

It's like what's first - the egg or the chicken. The idea is that developed economy tends to stabilise the political situation, and people have less desire for revolutions

 

[trsttte]

"Freely elected president" is the rhetoric of western media, noone else is using those words outside western media.

What!? The general that took power was about to be removed by the legitimate elected president, and he didn't take power to promote new elections, he took it for himself to make another military junta and dictatorship in central africa. If you don't see the problems here I don't know what to tell you

It's like what's first - the egg or the chicken. The idea is that developed economy tends to stabilise the political situation, and people have less desire for revolutions

You do know this is a much more extreme situation right...

Also this is not a people's revolution, this is an army taking power into their own hands because they had a chance to and it's one of the major plights that's been helding africa back, and why ECOWAS seems pretty determined to fix the situation to dispel the idea that armies can continues to do whatever they want when they want. It's why one of the fundamental principles of governments in so called "western countries" is civillian control of the army.

 

[AceKingSuited]

when all these new chip plants get built, its going to be funny watching prices tank. I mean, I just bought a 13th gen Intel laptop for work, I expect it will last me 10-15 years pretty easily, since its just for basic work stuff. I guess a lot of people do produce e-waste though cause they always want something new and shiny. That's something every country should be forced to do imo, recycle e-waste needs to get much better... I doubt if it does though... humans are a throwaway mindset culture until its too late... lol

Companies will never go for that. Capitalism requires constant buying and re buying of stuff, planned obsolesce equals bigger profits. If things last 10-15 years, the world's economy will come to a crawl.

 

[Prima.Vera]

With 100% German government budget. Nice.

 

[PapaTaipei]

With 100% German government budget. Nice.

It's almost like you pay for your slavery. Ty uncle Sam.