Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has announced its plans to form a strategic joint venture with Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. to invest in semiconductor manufacturing in Europe. The joint venture, known as the European Semiconductor Manufacturing Company (ESMC) GmbH, will be established in Dresden, Germany. ESMC aims to construct a state-of-the-art 300-millimeter fab facility, in alignment with the European Chips Act.
Under the agreement, TSMC will hold a controlling stake of 70% in the joint venture, while each of the other three companies will own 10% stakes. The total investments in this ambitious project are expected to surpass €10 billion, including contributions from equity injections, debt borrowing, and support from the European Union and the German government.
TSMC’s Chief Executive, CC Wei, expressed optimism about the significant potential for semiconductor innovation in Europe, especially in the automotive and industrial sectors. He stated, “Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe.”
Despite this exciting development, TSMC shares have experienced a minor decline of 1% during premarket trading on Tuesday.