ESMC semiconductor factory construction in Dresden

The European Semiconductor Manufacturing Company (ESMC), a joint venture between TSMC, Bosch, Infineon, and NXP, is advancing the construction of its wafer plant in Dresden, Germany. The project, which represents TSMC’s first European production site, involves a ten billion euro investment, including five billion euros in subsidies from the German Federal Ministry for Economic Affairs.

Initial reports indicated that production was expected to begin by the end of 2027, with the facility projected to create at least 7,000 jobs. To support the site, the city of Dresden proposed a €54 million tram line extension, though the project faced potential delays and a lengthy review process.

Subsequent developments confirmed the project is progressing on schedule, marked by a topping-out ceremony for the factory. The facility will focus on producing up to 12-nanometer chips for the automotive industry. While construction continues, training for future specialists has already begun at TSMC’s headquarters in Taiwan to prepare for the arrival of production equipment in late 2027.