European Commission Approves €5 Billion German Initiative for Cutting-Edge Microchip Plant in Dresden

Dresden to Host Europe’s First Advanced Microchip Manufacturing Facility

The European Commission has given its approval to a €5 billion German initiative aimed at establishing a groundbreaking microchip manufacturing plant in Dresden. This facility, spearheaded by the European Semiconductor Manufacturing Company (ESMC), is poised to produce 480,000 silicon wafers annually by 2029 when fully operational. The project aligns with the goals of the European Chips Act Communication, which seeks to bolster Europe’s supply security, resilience, and digital sovereignty.

Support for SMEs and Universities to Drive European Innovation

Germany’s support for ESMC’s Dresden facility is expected to fortify Europe’s semiconductor industry while contributing to the digital and green transitions. The plant, designed as an open foundry, will allow customers to order specific chip productions. This model is particularly beneficial for SMEs and European universities, which will receive special access to the facility’s production capabilities, fostering research and innovation across the continent.

A Major Milestone in Europe’s Semiconductor Technology Landscape

The Dresden plant, a collaboration between Taiwan Semiconductor Manufacturing Company (TSMC), Bosch, Infineon, and NXP, will produce high-performance chips using cutting-edge FinFET technology. With node sizes ranging from 28/22nm to 16/12nm, these chips are expected to enhance performance and reduce power consumption. The Commission has highlighted the facility as the first of its kind in Europe, marking a significant advancement in the continent’s semiconductor capabilities. The plant’s establishment follows similar investments in France and Italy, further solidifying Europe’s commitment to leading the semiconductor industry.

 

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