Dresden as the semiconductor capital: billion-dollar investments start!

Dresden as the semiconductor capital: billion-dollar investments start!

The economy in Dresden is booming: the city is becoming the leading location for the semiconductor industry in Europe. Several milestones in microelectronics are currently being created here, with the European Semiconductor Manufacturing Company (ESMC) and Infineon at the forefront. According to the NZZ Construction work on new factories is in full swing and investments show that the industry is making good progress.

A total volume of over 10 billion euros was estimated for ESMC, a joint venture between TSMC, Bosch, Infineon and NXP. It is the largest investment project of its kind in the EU and is intended to strengthen domestic chip production. The overall goal: the creation of stable access to semiconductor chips and the associated resilience of the chip supply in Germany and throughout Europe. Bosch reports that ESMC factory planning calls for production technology in the 12-28 nanometer range, specifically designed for the automotive industry and machine control.

Subsidies and investments

The German government has recognized how important semiconductors are for the competitiveness of the economy. As part of the European Chips Act, Germany is making around 2 billion euros available for energy-intensive semiconductor projects. In addition to the already mentioned 5 billion euros in funding for ESMC, Infineon will also receive around 1 billion euros for the construction of a new smart power factory, which is scheduled to go into operation at the end of 2026. Germany Trade and Invest also reports that Globalfoundries is also planning investments of 1.1 billion euros.

The ESMC factory will not only help secure jobs - up to 2,000 direct jobs and around 11,000 additional jobs are planned in the region and the nationwide semiconductor ecosystem. This could be a real upgrade for the region, especially since start-ups and small companies are also expected to benefit from the new production capacities. The factory will work closely with universities to pool technological expertise.

Education and skills shortages

One of the most important issues remains the shortage of skilled workers in the industry, which is loud Information from GTAI could amount to over 75,000 employees by 2030. To counteract this, programs to train and recruit international talent are on the agenda. The training should be made more practical and attractive so that more young people can be excited about microelectronics.

Dresden is therefore not only an important location for semiconductor production, but is also seen as a talent factory for the chip industry. The dynamism in the region is unprecedented and gives hope that Germany and Europe will be at the forefront not only as production locations, but also in research and development in the field of semiconductors.