Asia Express - East Asian ICT
TSMC Obtains Green Light for New Investment Plan in Germany
October 27, 2023

Taiwan's Ministry of Economic Affairs (MOEA) has given its approval to Taiwan Semiconductor Manufacturing Co. (TSMC) for the establishment of a semiconductor fab in Dresden, Germany, according to Commerical Daily News on October 27. The plant will be manufacturing 300 mm (12-inch) wafers produced on TSMC's 28/22 nanometer planar CMOS and 16/12 nm FinFET process technology. 

An official from the department revealed that TSMC, along with its joint venture partners, has initiated the initial phase of the project with an investment of 100,000 euros (US$105,505). Coupled with the 3.499 billion euros allocated for the project, this means that the Taiwanese chipmaker's total investment in the venture will amount to 3.5 billion euros, the official confirmed. 
The project, named the European Semiconductor Manufacturing Co., will be predominantly owned by TSMC, holding a 70 percent stake, while partners Bosch, Infineon Technologies, and NXP Semiconductors will each hold a 10 percent share, according to a statement released on the company's website. TSMC has set its sights on commencing construction of the plant in the latter half of 2024, with production slated to kick off by the close of 2027. 
Market Intelligence & Consulting Institute (MIC) foresees a substantial upswing in the industry, projecting a growth rate of 15.7% in 2024 compared to the previous year. Among the industry sectors, the memory and Integrated Device Manufacturing (IDM) segment is poised to exhibit the most robust growth at 20%, followed closely by the foundry sector, which is anticipated to grow at 15%.