On august 20th, TSMC held a groundbreaking ceremony for its first wafer fab in Europe in Dresden, Germany. During the event, TSMC announced that they have received a €5 billion subsidy from Germany. In line with its sustainability goals, TSMC plans to build a green wafer fab, with a target production start date of 2027.  

TSMC’s first European wafer fab, located in Germany: will produce chips for automotives and industrial applications. 

At the groundbreaking ceremony, attendees included TSMC Chairman and CEO C.C. Wei, European Commission President Ursula von der Leyen, and German Federal Chancellor Olaf Scholz, all of whom were present to witness the event. 

The wafer fab will be operated by the European Semiconductor Manufacturing Company (ESMC), a joint venture among TSMC, Bosch, Infineon, and NXP. TSMC holds a 70% stake, while Bosch, Infineon, and NXP each hold a 10% share. The ESMC will be led by Christian Koitzsch, who previously served as the plant manager at Bosch's Dresden wafer fab, as the General Manager of ESMC.

The German facility will produce mature process chips ranging from 12nm to 28nm for automotive and industrial applications, with full-scale production expected to commence in 2029 and a monthly output of 40,000 12-inch wafers. By utilizing FinFET technology, it aims to further strengthen the semiconductor manufacturing ecosystem in Europe. The total estimated investment exceeds €10 billion, including equity contributions, debt financing, and support from the European Union and the German government.

TSMC will develop a “Green wafer fab” by utilizing the geographic advantages of German. 

In the future, the German facility will be developed into a "green wafer fab," adhering to TSMC's sustainability and environmental protection standards. It will optimize resource conservation through existing and advanced technologies, including energy-efficient buildings, water resource recycling, and obtaining LEED Gold certification for green building.

When the new facility becomes operational, it will use 100% renewable energy, meeting TSMC’s standards for overseas plants. To enhance resource efficiency, the new plant will feature a high water recycling rate, with a rainwater harvesting system to help collect rainwater and reduce overall water consumption.

Ray Yang, Director of the International Division at the Industrial Technology Research Institute (ITRI), told Nikkei Asia that, "I believe TSMC will leverage Germany's geographic advantages to transform the German facility into a sustainable manufacturing plant using renewable energy."

Germany, in particular, is a leader in renewable energy. In 2023, renewable energy accounted for nearly 52% of Germany’s total electricity consumption, surpassing the 50% mark for the first time in a year. Germany aims to achieve 80% of electricity generation from renewable sources by 2030 and to reach its decarbonization goals for the power system by 2035.

Germany's abundant renewable energy resources will help TSMC achieve its sustainability goals. TSMC is the first semiconductor company to join RE100, and recently it has accelerated its RE100 timeline. The new target is to use 100% renewable energy by 2040, earlier than the original 2050 goal, and to increase the proportion of renewable energy used to 60% by 2030.

Looking to the future, the new semiconductor wafer plant is expected to create approximately 2,000 direct high-tech professional job opportunities, stimulating the local economy. C.C. Wei stated, “Our collaboration with partners Bosch, Infineon, and NXP to build the Dresden wafer plant aims to meet the rapidly growing demand for semiconductors in the European automotive and industrial sectors, and to advance technology across Europe.”

This article is authorized for reprint from "RECCESSARY." The original title is: "TSMC’s Green Wafer Plant in Germany Breaks Ground! 100% Green Energy, Green Building, Targeting European Automotive and Industrial Demand," by Chen Yingxuan. It is not subject to CC BY-SA licensing terms.

References:

♦ asia.nikkei（2024/8/21），TSMC breaks ground on first Europe chip fab with eye on auto sector

♦ cleanenergywire（2024/5/30），Renewables cover more than half of Germany’s electricity demand for first time this year

Source: Environmental Information Center