EU's Future Automotive Production Boosted by $11Bn Semiconductor Plant

Future production of the software-defined vehicle (SDV) in the European Union receives a huge boost with the ground-breaking on a €10 billion ($11 billion) semiconductor factory in Germany.

The plant in Dresden is to be run by a joint venture between electronic giant Taiwan Semiconductor Manufacturing Co. (TSMC), Bosch, Infineon and NXP dubbed the European Semiconductor Manufacturing Co. (ESMC). TSMC has 70% control of the company with the others sharing 10% each, reports BBC News.

Germany’s government has pumped half of the cost of the building into the project as a clear sign that the country’s automotive sector will be among the chief beneficiaries of locally produced semiconductors now recognized as an increasingly important component in the connected vehicles customers demand.

The plant expects to deliver the latest high-performance chips based on 300-mm silicon wafers using field-effect transistor technology and allowing the integration of several additional features in one chip.

News website Eunews reports the president of the European Commission, Ursula von der Leyen, as saying the project underlines Europe’s place as a global innovation powerhouse. She adds:

“The global race for tomorrow’s technologies has begun, and I want Europe to shift gears. The benefits will be felt far beyond Dresden and Saxony: European workers will gain 11,000 new jobs, both here and across the continent; European chip companies will gain access to new technologies and production capacities; and European industries will benefit from more reliable local supply chains and new products tailored to their needs.”