Semiconductors: Commission approves EUR 5 billion aid to construct and operate manufacturing plant in Germany
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 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 using field-effect transistor (‘FinFET’) technology and allowing the integration of several additional features in one chip. 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 to produce specific chips. The facility will also provide special access to its production capacities for SMEs and European universities, further supporting research and knowledge creation within Europe.
The Commission assessed and approved the German measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union and based on the principles set out in the European Chips Act Communication.
For further information, see PR.