TSMC held a groundbreaking ceremony for its first European wafer fab in Dresden on the 20th, German time. The ceremony announced that TSMC has secured €5 billion in German subsidies. Furthermore, to achieve its sustainable development goals, TSMC plans to build a "green wafer fab," with a target of production in 2027.
TSMC's first European wafer fab is located in Germany, producing chips for automotive and industrial applications
The groundbreaking ceremony was attended by TSMC Chairman and Chairman Wei Zhejia, European Commission President Ursula von der Leyen, and German Federal Chancellor Olaf Scholz.
The fab is operated by the European Semiconductor Manufacturing Company (ESMC), a joint venture between TSMC, Bosch, Infineon, and NXP. TSMC holds a 70% stake, while Bosch, Infineon, and NXP each hold a 10% stake. Christian Koitzsch, formerly the director of Bosch's Dresden fab, is at the helm as ESMC's general manager.
The German plant will produce mature 12nm to 28nm process chips for automotive and industrial applications. Full production is expected to begin in 2029, with a monthly capacity of 40,000 12-inch wafers. Leveraging FinFET technology, the plant will further strengthen Europe's semiconductor manufacturing ecosystem. Total investment is estimated to exceed €10 billion, including equity injections, debt, and support from the EU and German governments.
TSMC will use Germany's geographical advantages to build a "green wafer factory"
In the future, the German plant will be developed into a "green wafer fab," adhering to TSMC's sustainability and environmental protection standards. It will optimize resource conservation through the use of existing and advanced technologies, including energy-efficient construction, water recycling, and achieving LEED Gold green building certification.
Upon opening, the new plant will utilize 100% renewable energy, meeting the standards of all TSMC overseas facilities. To enhance resource efficiency, the new plant will utilize a high water recovery rate. A rainwater recycling system will help collect rainwater, thereby reducing overall water consumption.
Ray Yang, research director of the Industrial Technology Research Institute's Industrial Science and Technology International Research Center, told Nikkei Asia, "I believe TSMC will leverage Germany's geographical advantages to transform its German factories into sustainable manufacturing facilities using renewable energy."
Germany, in particular, is a major renewable energy powerhouse. In 2023, renewable energy accounted for nearly 52% of its total electricity consumption, exceeding the 50% mark for the first time in a year. Germany aims to achieve 80% renewable energy generation by 2030 and decarbonize its electricity system by 2035.
Germany's abundant renewable energy resources will help TSMC achieve its sustainability goals. TSMC was the first semiconductor company to join RE100 and recently moved up its RE100 schedule, aiming to use 100% renewable energy by 2040 (originally set for 2050) and increasing that percentage to 60% by 2030.
Looking ahead, the new fab is expected to create approximately 2,000 direct high-tech professional jobs, stimulating the local economy. Wei Zhejia stated, "We are collaborating with our partners Bosch, Infineon, and NXP to build the Dresden fab to meet the rapidly growing demand for semiconductors in Europe's automotive and industrial sectors, and to drive technological advancement across Europe."
This article is reprinted with permission from RECCESSARY. The original title is "TSMC breaks ground on its German green wafer fab! 100% green electricity and green buildings, targeting the needs of Europe's automotive and industrial sectors." By Chen Yingxuan. This article is not subject to CC licenses.
References：
♦ asia.nikkei(August 21, 2024),TSMC breaks ground on first Europe chip fab with eye on auto sector
♦ cleanenergywire(May 30, 2024),Renewables cover more than half of Germany’s electricity demand for first time this year
Sources: Environmental Information Center
