Germany’s semiconductor ambitions soar
August 9, 2023
Bosch Factory in Dresden, (c) Robert Bosch GmbH
In a groundbreaking deal with the German government that is set to redefine Europe’s semiconductor landscape, industry giants TSMC, Bosch, Infineon, and NXP Semiconductors have united to invest over €10 billion ($11 billion), which will propel Germany’s ascendancy in chip manufacturing.
Germany is set to become a significant player in the semiconductor industry as TSMC (TWSE: 2330, NYSE: TSM), Robert Bosch GmbH, Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY), and NXP Semiconductors N.V. (NASDAQ: NXPI) announce plans to collectively invest in the European Semiconductor Manufacturing Company (ESMC) GmbH in Dresden. This landmark collaboration aims to establish an advanced semiconductor manufacturing hub to cater to the surging demands of the automotive and industrial sectors.
The joint venture is slated to construct a cutting-edge 300mm fab, anticipated to churn out 40,000 300mm (12-inch) wafers monthly. Backed by TSMC’s state-of-the-art technologies, including the 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology, this move will significantly strengthen Europe’s semiconductor manufacturing prowess and generate around 2,000 high-tech jobs.
Pending final confirmation of public funding through the European Chips Act, the project is expected to break ground in the second half of 2024, with production scheduled for late 2027. TSMC is poised to lead the partnership with a 70% stake, Bosch, Infineon, and NXP Semiconductors N.V. will each hold a 10% stake, subject to regulatory approvals.
This strategic investment, surpassing 10 billion euros, marks Germany’s assertive step toward securing its position in the semiconductor arena. The joint venture aims to foster innovation and cater to the escalating need for advanced chip technology, particularly in the automotive and industrial sectors.
This deal follows the June 19 announcement that Intel and the German government inked a groundbreaking pact for Intel’s advanced wafer fabrication site in Magdeburg, Saxony-Anhalt. With an investment exceeding 30 billion euros, Intel will construct two cutting-edge semiconductor facilities in Europe. Government support has also expanded to reflect the project’s scope and changing economic landscape.
David Connett, a partner at Connett & Unland GbR, welcomes the recent investments by TSMC, Bosch, Infineon, and NXP Semiconductors. in the European Semiconductor Manufacturing Company (ESMC) GmbH. These collaborations are expected to fortify the European supply chain, particularly in the automotive and industrial sectors. Connett suggests that while these developments are positive, their impact on the office imaging sector is unlikely in the short to medium term. These investments reflect Germany’s efforts to establish itself as a key player in the semiconductor industry, with a cutting-edge manufacturing hub set to generate high-tech jobs and enhance manufacturing capabilities.
The first facility is anticipated within four to five years after European Commission approval. The project, known as the “Silicon Junction,” will fuel a balanced supply chain for Europe and fortify the semiconductor industry. Chancellor Olaf Scholz lauded the move, noting the investment’s technological significance and job creation.
This endeavour elevates Germany’s technological status and strengthens the European semiconductor supply chain. The site is expected to generate thousands of jobs, while Intel’s commitment to sustainability remains a key focus.
These two deals cement Germany’s innovation legacy and itself as a key player in shaping the future of European semiconductor manufacturing.
Categories : World Focus
Tags : Bosch by TSMC Chips EU Germany Infineon Intel NXP Semiconductors
