Dresden, once the epicenter of European chipmaking, is experiencing a renaissance in semiconductor manufacturing due to hefty investments from both global powerhouses and local entities.
Historically, since the mid-1990s, the city has transitioned from hosting initial ventures by companies like AMD.
It has since become a significant hub, with Globalfoundries transforming it into Europe’s largest contract chipmaking site.
This transformation is set to accelerate with recent projects like Infineon’s $5 billion plant and Robert Bosch’s $3 billion expansion.
Most notably, Taiwan Semiconductor Manufacturing Co. (TSMC) is establishing a EUR 10 ($11) billion euro facility, marking its European debut.
This facility is located next to Bosch’s operations, with additional support from NXP.
Dresden now faces the challenge of attracting approximately 27,000 skilled workers by 2030 to support these advanced ventures.
This growth is bolstered by the Fraunhofer Institute’s expansion in R&D for cutting-edge chip packaging and computing technologies.
The urgency of these developments is magnified by the European Union’s push to regain a foothold in semiconductor production.
Once a leader in the 1990s, Europe‘s global share has dwindled to just 8%.
The EU aims to reverse this with a EUR43 billion incentive under the European Chips Act, hoping to double its capacity by 2030.
These efforts are not just about boosting output but also about securing Europe’s technological independence during global supply uncertainties.
Strategic Investments in Semiconductor Technology
The substantial investments underscore the strategic importance of semiconductors, as evidenced by significant public funding and collaborations between major firms.
Moreover, the joint venture of TSMC, Bosch, Infineon, and NXP, known as the European Semiconductor Manufacturing Company (ESMC), marks a pivotal step towards bolstering Europe’s semiconductor capabilities.
The upcoming Dresden-based fab will focus on advanced FinFET transistor technology, enhancing capacities for the automotive and industrial sectors.
This revival not only boosts Dresden’s economy but also positions Europe at the vanguard of semiconductor innovation.
It’s essential for everything from consumer electronics to crucial automotive and industrial systems.
With these investments and partnerships, Dresden is set to become a key global semiconductor hub, symbolizing Europe’s broader ambitions to revitalize its industrial and technological sectors.