ESMC microchip plant breaks ground in Dresden, von der Leyen: Europe is an innovation powerhouse

Brussels – European Semiconductor Manufacturing Company (ESMC), a joint venture between Taiwan Semiconductor Manufacturing Company (TSMC), Bosch, Infineon, and NXP, today (Aug. 20, 2024), broke ground a large-scale microchip manufacturing plant in Dresden, Germany, in the presence of European Commission President Ursula von der Leyen. Germany will support the facility with 5 billion euros in state aid, which the EU Commission also approved today. The first-of-a-kind plant will deliver high-performance chips based on 300 mm silicon wafers with node sizes covering 28/22 nm and 16/12 nm, using field-effect transistor (FinFET) technology and allowing the integration of several additional features in one chip.

“This is more than a groundbreaking ceremony we have ahead of us. It is an endorsement for Europe, as a global innovation powerhouse. The world’s largest chipmaker is coming to our continent and joining forces with three European champions,” von der Leyen said at the ceremony. “The benefits will be felt well beyond Dresden and Saxony. European workers will gain 11,000 new jobs, both here and across our continent. European chip companies will gain access to new technologies and production capacities. European industries will benefit from more reliable local supply chains, and new products that are tailored to their needs,” the EU president added. “At a time of growing geopolitical tensions, TSMC will also benefit from geographic diversification to Europe, better access to our European strengths, like automotive and to our unique Single Market. So this is a true win-win situation for all of us,” she noted.

“It has been three years now since we set the goal to double Europe’s share of global chip production to 20%”  with the European Chips Act, the EU’s microchip law. “And since then, we have seen new state-of-the-art chip factories break ground across Europe. If you take Crolles near Grenoble or Catania in Sicily. And now another here in Dresden. This new fab qualifies under the European Chips Act as a so-called first-of-a-kind facility. In other words, it will manufacture products that are not present or planned in any other facility across Europe. This means that this facility is also entitled to national financial support. So, good news, just this morning, I had the opportunity to authorize state aid from Germany to this project, to the tune of EUR 5 billion,” von der Leyen pointed out.

Finally, the president recalled that boosting European industrial competitiveness “is a central pillar of the European Commission’s new five-year program.” First, “I will propose a new European Competitiveness Fund as part of our new budget. It will invest in strategic technologies and contribute to our important projects of common European interest.” Since its launch, the European Chips Act “has already attracted commitments of public and private investments commitments in the order of €115 billion…The next European Commission must be and will be an investment Commission,” the president pointed out. “Second, in the first 100 days of the new mandate, I will propose a new Clean Industrial Deal. One of its central goals will be to ensure access to cheap clean energy and raw materials. And third, we will establish a Union of Skills,” she added.

“The global race for tomorrow’s technologies has begun. And I want Europe to shift gears.” von der Leyen concluded.