The European Semiconductor Manufacturing Company (ESMC) is celebrating the topping-out ceremony for its new microchip factory in northern Dresden, marking the completion of the building’s structure two years after construction began.

A new semiconductor factory is under construction in northern Dresden, with the Richtfest (topping-out ceremony) held more than two years after construction started.

The project carries a total investment of €10 billion, including €5 billion in funding from the German Federal Ministry for Economic Affairs, and will target automotive-segment chips.

ESMC is a joint venture of TSMC, Bosch, Infineon, and NXP Semiconductor, with TSMC owning 70 percent and the other partners each holding 10 percent.

The Dresden site is part of Silicon Saxony, Europe’s expanding microelectronics hub, which now includes about 3,600 companies and more than 80,000 employees, with projected growth to around 100,000 jobs by 2040.

The facility will manufacture up to 12-nanometer chips, aligning Dresden with Europe’s largest microelectronics cluster and broader expansion alongside Infineon and GlobalFoundries.

The plant is expected to create around 2,000 jobs, with production slated to begin in 2027 and a focus on automotive chips.

ESMC president Christian Koitzsch and managing director Ching-Kun Huang attended the commemoration, underscoring the milestone toward Europe’s first production site for TSMC.

Overall, the project strengthens Dresden’s role in the European and global semiconductor supply chain, boosting regional growth and advanced manufacturing capabilities.

Construction employs about 2,000 workers and roughly 30,000 precast concrete elements, signaling progress toward the planned production start in the second half of 2027.

The €10 billion investment includes €5 billion funded by the German government; the topping-out ceremony took place with Saxony’s Prime Minister at the event.