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TSMC's first European wafer fab receives € 5 billion subsidy for construction

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2024-08-26 13:41:59
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Recently, TSMC held a groundbreaking ceremony for its first European 12 inch wafer fab. It is reported that the European Union has approved Germany to provide 5 billion euros in subsidies for the factory.

It is understood that TSMC's 12 inch wafer fab is located in Dresden, Germany and is called "European Semiconductor Manufacturing Company (ESMC)". In August 2023, TSMC announced a partnership with Bosch, Infineon, and NXP to jointly invest in the establishment of ESMC. TSMC holds a 70% stake and is responsible for operations, while Infineon, NXP, and Bosch each hold a 10% stake, with a total investment of approximately 10 billion euros.

The wafer fab is expected to introduce 28/22 nm planar complementary metal oxide semiconductor (CMOS) technology and 16/12 nm fin field-effect transistor (FinFET) processes, with an initial monthly production capacity of approximately 40000 12 inch wafers. According to the planned construction schedule, the factory will start construction in the fourth quarter of 2024, with equipment expected to enter the factory in the third quarter of 2026 and mass production starting as early as the fourth quarter of 2027.

It is worth noting that at the foundation ceremony, EU Executive Committee President von der Leyen announced that the EU has approved to provide 5 billion euros of subsidies for Dresden wafer factory.

In fact, in addition to building factories in Germany, TSMC is also investing heavily in setting up factories in the United States and Japan. However, industry insiders point out that TSMC's expansion overseas will face a series of challenges, including high operating costs, labor shortages, cultural differences, and more. For example, the German Silicon Valley Association reminds that the German labor union has a strong and tough attitude, which is one of the challenges that TSMC must overcome.

Source: Yangtze River Delta Laser Alliance

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