SEMICONDUCTOR INDUSTRY Construction of TSMC’s Dresden chip factory scheduled to begin in 2024

Related Vendors

Diotec Semiconductor AG

wts // electronic components GmbH

CISSOID S.A.

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, has announced that preparations have begun for the construction of its Dresden chip factory and that plans are on schedule.

The announcement was made at the European Forum in Amsterdam. According to Taiwan Semiconductor Manufacturing Co. (TSMC)’s EMEA President Paul de Bot, TSMC wants to break ground on the Dresden facility- which is the chipmaker’s first factory in Europe - this year.

Construction to begin in Q4 2024

De Bot says that construction work will begin in the fourth quarter of 2024, with an estimated completion date of 2027. TSMC announced the plans for the plant near Dresden last summer and brought the German manufacturers Infineon, NXP and Bosch on board, each of which has a ten percent stake. An area that’s becoming known as Silicon Saxony, the state in Germany’s east has seen an explosion in the number of microelectronics and related companies establishing operations there. Many of these companies are located in the north of Dresden.

BASIC KNOWLEDGE

Semiconductor vs microchip vs integrated circuit: What’s the difference?

Ahead of the company's arrival, Taiwan’s CAN English News spoke to Siegfried Zenker, the mayor of Weinböhla, who said, "We were very, very happy when we first heard that TSMC was considering a site in Dresden." He added that the city, "thought it would be wonderful to be open for TSMC as well," in reference to the fact that Bosch, TSMC’s European Semiconductor Manufacturing initiative partner, had already selected the city as its residential location for employees working at its facility in Dresden.

TSMC seeks government funding

According to TSMC, a total of US$11 billion is expected to flow into the project, but these subsidies have not yet been released. According to Kevin Zhang, TMSC’s Vice President of Business Development, they are expecting a release of funds soon.

“It's an exciting time for the European semiconductor ecosystem now that TSMC is located right in the ‘backyard’ of major automotive customers,” said Zhang. Production in Dresden will initially take place on a 22-nanometer scale, using a process that was introduced in the mid-2010s.

The TSMC joint venture was founded with Bosch, NXP and Infineon, as part of the European Semiconductor Manufacturing Company. This is intended to provide advanced semiconductor manufacturing services and 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. The project is planned under the framework of the European Chips Act.

Experience power electronics for E-Mobility & Energy Storage

Would you like to experience the trends in power electronics for E-Mobility and Energy Storage at first hand? Become part of the PCIM Europe exhibition from 11 – 13 June 2024 in Nuremberg, Germany. There, you can experience a stage with top-class presentations as well as Live Product Demos at the stand of specialized exhibitors.
Learn more

(ID:50046456)