The first European semiconductor factory from Taiwan’s chip manufacturer TSMC in Dresden is not even finished yet, and already discussions about a second facility are underway. Infineon’s Chief Operations Officer (COO) Alexander Gorski has expressed a desire for such a facility dedicated to producing chips with the latest structure sizes.
Future of Semiconductor Manufacturing in Europe
Gorski recently voiced his wish at the Bavarian Semiconductor Congress, stating, “The next step must be for TSMC to build another factory with smaller structure sizes.” This shows a clear ambition to elevate Europe’s position in the semiconductor industry, which has been historically dominated by Asian and American companies.
For the Dresden plant, TSMC has established a joint venture named ESMC in collaboration with Bosch, Infineon, and NXP, transforming the Taiwan Semiconductor Manufacturing Company into the European Semiconductor Manufacturing Company. This consortium will primarily focus on manufacturing microcontrollers (MCUs) for automotive applications, initially targeting fabrication processes in the 28 to 22 nanometer range, subsequently progressing to 16 to 12 nm technology. The inclusion of non-volatile RAM, such as resistive RRAM and magnetoresistive MRAM, aims to ensure that the Dresden site becomes the world’s most advanced facility for microcontrollers.
A Question of Demand
Although the emergence of advanced manufacturing technology is pivotal, there is presently limited demand for finer processes in automotive sectors. Companies like Mobileye, a subsidiary of Intel, along with Renesas from Japan and SiEngine from China, have developed processors with 7 nm and even 5 nm structures. However, these represent niche applications mainly utilized for Advanced Driver Assistance Systems (ADAS) in high-end vehicles.
Server processors are already advancing to 2 nm, with desktop and notebook versions expected to follow next year. Meanwhile, Intel’s planned factory in Magdeburg brings into question whether there is a need for such modern manufacturing techniques in Europe. While processors, GPUs, and various chips can be found in the latest desktop PCs, laptops, and smartphones, these are generally designed by US and Asian firms.
Looking Towards the Future
Infineon is strategically positioning itself for the next decade. Should partners engage in discussions regarding another semiconductor plant, the earliest commissioning would likely be around 2030, if not later. By that time, consumer needs may have evolved significantly compared to the present.
The semiconductor landscape in Europe is poised for change, and initiatives like TSMC’s new factory, as well as the proposed second facility, could lead to a renaissance in local chip production. As demand grows and technology continues to advance, Europe’s role in the global semiconductor market may strengthen, ushering in a new era of innovation and competitiveness.
