The European Commission has approved a €5 billion state aid package from Germany for the construction of a semiconductor factory in Dresden. This project is led by the European Semiconductor Manufacturing Company (ESMC), a joint venture comprising TSMC, Bosch, Infineon, and NXP.
Project Details:
- Total Investment: The total investment in the plant is estimated to exceed €10 billion. TSMC, the world’s largest chip manufacturer, holds a 70% stake in ESMC, while Bosch, Infineon, and NXP each hold 10%. Yahoo Finanzas
- Location and Employment: The factory will be situated in Dresden, Germany, and is expected to create approximately 2,000 direct jobs.
- Planned Production: The plant will primarily produce microchips for the automotive industry, addressing the growing demand for connected and electric vehicles.
European Context:
This initiative aligns with the European Chips Act, which aims to increase semiconductor production within the European Union and reduce reliance on external suppliers. The goal is for Europe to produce 20% of the world’s chips by 2030, doubling the current share.
Official Statements:
- Ursula von der Leyen, President of the European Commission: “The world’s largest chip manufacturer is coming to our continent and joining forces with three European champions. The benefits will be felt beyond Dresden and Saxony.”
- Olaf Scholz, German Chancellor: “If we don’t do it, others will, and our dependence will increase.”
Industry Impact:
The construction of this factory represents a significant step in strengthening Europe’s position in the semiconductor industry, particularly in the automotive sector. Additionally, it is expected to boost the local and regional economy, solidifying Dresden as a key hub in chip production. Digital Strategy
This project reflects the commitment of the European Union and Germany to foster technological innovation and ensure digital sovereignty in an increasingly competitive global market.