TSMC Germany Plant to Begin 2024, Production in 2027

TSMC is set to commence construction on a new semiconductor manufacturing facility in Germany by late 2024, with production slated to begin by the end of 2027.

The new plant, according to current plans, will start its production phase in Q4 2027, aiming to reach a monthly output of 40,000 wafers by 2028.

In August 2023, TSMC announced a strategic partnership with Bosch, Infineon, and NXP to form the European Semiconductor Manufacturing Company (ESMC). With regulatory approvals secured and additional requirements met, TSMC will hold a 70% stake in ESMC, while Bosch, Infineon, and NXP will each own 10%. The total investment in this project is projected to exceed €10 billion, supported by shareholder contributions, loans, and substantial backing from the EU and German government.

Construction of the ESMC facility is planned to begin in the latter half of 2024, with an anticipated production start by late 2027. The plant will use TSMC's advanced 28/22nm and 16/12nm process technologies to produce 12-inch wafers, reaching a monthly capacity of 40,000 wafers. This new facility is expected to generate approximately 2,000 high-tech jobs.

In contrast, the timeline for Intel’s new wafer fab in Magdeburg, Germany, remains uncertain, with higher production costs in the US and Germany compared to Taiwan. Consequently, TSMC may need to adjust its pricing strategies for the German plant, although profitability is not assured.