Skip to main content
Shaping Europe’s digital future

Commission approves €5 billion German State aid measure to support ESMC in setting up a new semiconductor manufacturing facility

  • NEWS ARTICLE
  • Publication 20 August 2024

Commission has approved, under EU State aid rules, a €5 billion German measure to support European Semiconductor Manufacturing Company (ESMC) in the construction and operation of a microchip manufacturing plant in Dresden.

Close-up image of a precision robotic arm engaged in the manufacturing process of a chip. The chip is populated with various electronic components and the robotic arm is equipped with a tool for assembly or inspection, highlighting advanced technology in electronics manufacturing.
© image by IM Imagery, Adobe Stock

ESMC is a joint venture between Taiwan Semiconductor Manufacturing Company (‘TSMC'), Bosch, Infineon, and NXP. The measure will 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 Communication. The measure will also contribute to achieving the digital and green transitions.

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 aims at serving the demand for automotive and industrial applications.

The new large-scale manufacturing facility supported under the measure will deliver high-performance chips, based on 300mm silicon wafers with node sizes covering 28/22nm and 16/12nm, using field-effect transistor (‘FinFET') technology and allowing the integration of several additional features in one chip. The produced chips will offer better performance while at the same time reducing total power consumption. The plant, which is planned to be operating at full capacity by 2029, is expected to produce 480,000 silicon wafers per year. The facility will operate as an open foundry, meaning that any customer – including but not limited to the three other shareholders besides TSMC – can place orders for the production of specific chips.

Read the full press release.

Further information: