Topping-out ceremony for new Dresden microchip factory — “Milestone”

Construction of the new microchip factory in northern Dresden is moving forward: A little over two years after construction began, the European Semiconductor Manufacturing Company (ESMC) celebrated the topping-out ceremony. ESMC President Christian Koitzsch spoke at the ceremony about a milestone on the path to becoming the first production site in Europe for the Taiwanese industry giant TSMC. 

According to him, more than 2,000 employees assembled approximately 30,000 precast concrete elements on the construction site. “We are rightly proud of what we have achieved here,” said Koitzsch. “It is truly a team success.” We are now halfway to our goal, added Managing Director Ching-Kun Huang. Training for future skilled workers has already begun at TSMC’s headquarters in Taiwan. There, the focus is on blending Taiwanese corporate culture with German engineering expertise.

Production set to start in 2027

The joint venture between Taiwanese industry giant TSMC—which will eventually employ 2,000 people—and Bosch, Infineon, and NXP Semiconductor is on schedule. Production is set to begin in the second half of 2027. With its future production of chips down to 12 nanometers, ESMC is a new piece of the puzzle in the “Silicon Saxony” ecosystem, according to Koitzsch. 

The factory is a joint venture between Taiwanese industry giant TSMC and Bosch, Infineon, and NXP Semiconductor. TSMC is set to hold a 70 percent stake in the company, with the other partners each holding 10 percent. The total investment amounts to ten billion euros; the Federal Ministry for Economic Affairs contributed five billion of that as funding. The focus is on chips for the automotive industry. 

“Silicon Saxony” semiconductor hub continues to grow

With TSMC’s arrival and production expansions at Infineon and Globalfoundries in Dresden, “Silicon Saxony” continues to grow as Europe’s largest microelectronics hub, according to the Ministry of Economics. The network consists of approximately 3,600 companies with over 80,000 employees. The number of employees is expected to grow to around 100,000 by 2040.