EU approves €5 billion subsidy to support TSMC's German fab
The European Commission has approved, under EU State aid rules, a EUR 5 billion German measure to support European Semiconductor Manufacturing Company (ESMC) in the construction and operation of a microchip manufacturing plant in Dresden.
ESMC is a joint venture between Taiwan Semiconductor Manufacturing Company (TSMC), Bosch, Infineon, and NXP. The measure aims to strengthen Europe's security of supply, resilience and digital sovereignty in semiconductor technologies, in line with the objectives set out in the European Chips Act. T
Germany notified the Commission of its plan to support ESMC's project to build and operate a new semiconductor production facility in Dresden, Germany. The project is looking to serve the demand for automotive and industrial applications.
The new large-scale manufacturing facility will deliver high-performance chips, based on 300mm silicon wafers with node sizes covering 28/22nm and 16/12nm, using FinFET technology and allowing the integration of several additional features in one chip. The plant, which is currently planned to be operating at full capacity by 2029, is expected to produce 480,000 silicon wafers per year.
Back in October 2022, the Commission approved an Italian measure to support STMicroelectronics in the construction and operation of a SiC wafer plant in Catania using 150mm technology. Next year, in April 2023, the Commission approved a EUR 2.9 billion French aid measure to support STMicroelectronics and GlobalFoundries in the construction and operation of a new microchips manufacturing facility in France. Earlier this year, in May more specifically, an additional Italian measure was approved to support STMicroelectronics in setting up a new integrated SiC manufacturing facility in Italy.
