TSMC Expands to Europe

TSMC has officially begun construction of its first European manufacturing plant in Dresden, Germany. The plant, part of the European Semiconductor Manufacturing Company (ESMC), is a joint venture between TSMC, Bosch, Infineon Technologies, and NXP Semiconductors, and represents a strategic investment of over €10 billion. Supported by €5 billion in funding from the European Union, this investment pushes the EU's initiative for digital sovereignty under the EU Chips Act.

Scheduled to become fully operational by 2027, the Dresden facility will produce up to 40,000 300mm wafers monthly using TSMC’s advanced 28/22nm CMOS and 16/12nm FinFET technologies.

This expansion will fortify Europe's semiconductor manufacturing capabilities, by reducing its dependence on foreign suppliers, where Europe can support key sectors like automotive, industrial automation, and energy. TSMC's Dresden facility is set to meet the surging demand for semiconductors, fueled by advancements in electric vehicles and smart infrastructure.

The new fab is expected to generate 2,000 direct high-tech jobs and create numerous indirect jobs throughout Europe’s semiconductor supply chain, further positioning Dresden as a key player in the global semiconductor ecosystem. With existing semiconductor powerhouses like Bosch and Infineon already in the region, the addition of TSMC’s advanced foundry will strengthen Silicon Saxony, making it one of the most prominent semiconductor hubs globally.

In keeping with TSMC’s commitment to sustainability, the Dresden fab will incorporate energy-efficient practices, and water reclamation technologies, and aim for LEED certification. The facility’s green construction underscores the company’s dedication to environmental responsibility in an industry known for its energy consumption.

TSMC’s entry into Europe, alongside its partners Bosch, Infineon, and NXP, marks a new chapter in the European semiconductor industry. As the Dresden facility moves towards completion, Europe stands to benefit from greater semiconductor independence, technological innovation, and enhanced competitiveness in key markets.