TMSC's construction on first European semiconductor fab in Germany starts next month

TSMC will host a groundbreaking ceremony next month in Dresden, Germany, to celebrate its first semiconductor plant in Europe.

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The milestone is a big one as TSMC expands its global semiconductor production footprint, with TSMC Chairman and CEO C.C. Wei leading a delegation from the company and host equipment and material suppliers, clients, and government officials on August 20 as a sign of TSMC's commitment to its investments into Germany.

TSMC's semiconductor plant in Dresden was formally known as European Semiconductor Manufacturing Corp. (ESMC) is scheduled to begin operation in late 2027, according to sources of Nikkei Asia. The new semiconductor plant in Dresden will represent a "new dimension for sustainable semiconductor production in Europe" according to the invitation to TSMC's event, as seen by Nikkei Asia.

TSMC confirmed the schedule of the ceremony with Nikkei Asia, saying that the event "represents a significant milestone for TSMC and our investment partners in the European semiconductor industry. The ESMC project is on track as planned, with construction expected to start by the end of 2024".

TSMC's European joint venture has many top chipmaking clients including Infineon, Robert Bosch and NXP, each taking a 10% stake. The project is expected to cost of 10 billion euros ($10.8 billion USD or so) and aims to meet the bloc's demand for localization in automotive and industrial chips.

In order to run the project, TSMC hired Christian Koitzsch, an industry veteran and former Bosch senior vice president and Dresden plant manager, to lead the semiconductor fab construction operations.

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TSMC has also been expanding its semiconductor production fabs into the US and Japan over the last couple of years, with its site called "Nightless Castle" as it was made in 2 years thanks to incredibly hard work, and 24-hour work days.