Driving Europe’s Chip Renaissance: TSMC’s Vision with ESMC

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TSMC, in collaboration with Bosch, Infineon and NXP, is planning to invest in the European Semiconductor Manufacturing Company (ESMC), based in Dresden, Germany. This strategic move aims to meet the burgeoning demand for advanced semiconductor-manufacturing services, particularly in the automotive and industrial sectors.

www.eetimes.com/, Sept. 15, 2023 – 

The establishment of ESMC signifies a pivotal development in Europe's semiconductor industry. The consortium's final investment decision hinges on the allocation of public funds, a matter currently under consideration within the framework of the European Chips Act.

A substantial boon to the regional economy, ESMC's establishment is set to generate about 2,000 high-tech, professional jobs. Construction of the fab is slated to begin next year, with production scheduled to kick off in 2027.

In an interview with EE Times, TSMC's Nina Kao asserted that the joint venture (JV) between TSMC and its European partners is set to be a game-changer in semiconductor manufacturing. The utilization of TSMC's advanced process technology promises to deliver the performance, efficiency and innovation needed to drive the automotive and industrial sectors forward, aligning perfectly with Europe's lead markets and their burgeoning product developments, she said.

"Bosch, Infineon and NXP are all long-time TSMC customers and key European players in the automotive segment and industrial semiconductor supply chain," she added.

The total investment in ESMC is expected to exceed €10 billion, consisting of equity, borrowed funds and support from both the European Union and the German government. "To create a competitive investment environment, respective public financial support will be required," Kao said.

Semiconductor process technology

The joint venture, initially focusing on the 16-/12-nm FinFET and 28-/22-nm planar CMOS nodes, brings together cutting-edge capabilities that will revolutionize various sectors, notably automotive and industrial applications. These nodes represent a substantial leap forward in Europe's semiconductor technology, promising a host of advantages.

These process nodes align perfectly with the evolving needs and innovation roadmaps in the automotive and industrial sectors. The industrial landscape is increasingly demanding chips in the 28-nm, 22-nm, 16-nm and 12-nm categories. These nodes serve as crucial enablers for a wide range of applications, from network communication to consumer electronics and automotive solutions.

What sets these process nodes apart is their ability to deliver on the twin pillars of performance and efficiency. In particular, the 16-/12-nm FinFET technology excels at providing remarkable energy efficiency while maintaining robust performance. This makes it ideal for power-sensitive automotive systems, where efficiency and reliability are paramount.

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