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Germany approves Bosch, NXP, and Infineon stakes in TSMC Dresden chip fab

Each company will acquire 10% of shares, while Taiwan’s TSMC will control remaining 70% of Dresden fab

TSMC. (Reuters photo)

TSMC. (Reuters photo)

TAIPEI (Taiwan News) — The German cartel office cleared stakes by Bosch, Infineon, and NXP in Taiwan Semiconductor Manufacturing Co.’s (TSMC) upcoming fab in Dresden on Tuesday (Nov. 7).

According to Reuters, the cartel office said each company would acquire 10% of shares in European Semiconductor Manufacturing Co. (ESMC). The remaining 70% of ESMC will be owned by TSMC.

“The recent geopolitical upheavals have shown how important secured access to semiconductors is, especially for the German industry,” Reuters cited Andreas Mundt, president of the cartel office, as saying in a statement. Mundt added that both the EU and Germany were committed to moving more chip production to Europe and Germany.

Fab construction is expected to start in the second half of 2024, with commercial production expected to begin by the end of 2027. Once complete, TSMC will operate the facility, which will have a monthly production capacity of 40,000 300mm (12-inch) wafers.

The Dresden fab will produce 22/28 nm and 12/16 nm chips for the automotive and industrial sectors. The total cost of the plant is expected to exceed 10 billion euros (NT$345 billion) and will consist of equity injection, debt borrowing, and support from the EU and German governments.