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EU approves €5 billion for advanced Dresden microchip plant

Manufacturing and Engineering

Microchip, Manufacturing, Dresden, Semiconductor

Business Honor
21 August, 2024

€5 billion approval for Dresden microchip plant to enhance Europe's semiconductor manufacturing and innovation.

The European Commission has approved a €5 billion German measure to support the construction of a cutting-edge microchip manufacturing plant in Dresden. The new facility, part of a joint venture between Taiwan Semiconductor Manufacturing Company (TSMC), Bosch, Infineon, and NXP, is expected to produce 480,000 silicon wafers every year by 2029, upgrading Europe's capacity in semiconductor manufacturing.

The Dresden plant will be Europe's first of its kind and deliver high-performance chips with 300mm silicon wafers and advanced 28/22nm and 16/12nm node sizes. The Dresden plant will use FinFET (Field-Efficient Transistor) technology, allowing for the integration of several features on a single chip to maximize performance and minimize power consumption. The plant will be an open foundry where many customers, like SMEs and European universities, may tap into the capacities.

This move is in line with the European Chips Act; it supports the advancement of semiconductor production facilities in Europe, aimed at making the supply chain more robust and enhancing digital sovereignty. The Commission will be expecting that this facility will be able to contribute to transforming Europe into a greener and more digital economy through innovation and research in semiconductor technologies.

The Dresden location also opens large opportunities for the European semiconductor ecosystem. Its objective is to deliver critical chips for the industrial base across Europe while being supportive of research institutes by gaining exclusive access to its production capacity. It will be the first open foundry in Europe with these technological capabilities and promises to complement the fast-growing demand for semiconductor solutions across a range of sectors."

It is part of a larger trend within Europe to boost investments in the semiconductor manufacturing business, with similar initiatives underway in France and Italy, further strengthening the continent's position in global chip production.