TSMC plans European joint venture to construct German fab

Taiwan Semiconductor Manufacturing Co. Ltd.
TSM,
+0.20%
is creating a joint venture with Robert Bosch GmbH, Infineon Technologies AG
IFX,
-1.99%
and NXP Semiconductors N.V. 
NXPI,
+2.35%
to invest in Europe’s semiconductor manufacturing. The companies will invest in European Semiconductor Manufacturing Company (ESMC) GmbH, in Dresden, Germany, which intends to construct a 300-millimeter fab under the framework of the European Chips Act. TSMC will own 70% of the joint venture, while the other three players will each own 10%. The companies expect total investments to top €10 billion, including equity injections, debt borrowing and support from the EU and the German government. “Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe,” TSMC Chief Executive CC Wei said in a release. TSMC shares are off 1% in premarket trading Tuesday.