Dresden hosts the highest concentration of semiconductor manufacturing in Europe, with fabs from Infineon, GlobalFoundries, Bosch, and the new ESMC joint venture with TSMC. The cluster employs tens of thousands and produces chips for automotive, industrial, and consumer electronics.Source: Silicon Saxony cluster report

What chips are made in Dresden Germany?

Dresden produces automotive-grade microcontrollers and power chips (Infineon), trailing-edge logic and foundry wafers (GlobalFoundries), silicon carbide power chips (Bosch), and will produce 28nm automotive chips at the ESMC fab once it opens.Source: Dresden semiconductor cluster profiles

When will the TSMC Dresden factory open?

The ESMC fab (European Semiconductor Manufacturing Company), a TSMC joint venture with Bosch, NXP, and Infineon, began construction in 2024 and is expected to begin production around 2027-2028.Source: ESMC project announcements

Background

Dresden is Europe's most concentrated semiconductor manufacturing hub, home to fabs operated by Infineon, GlobalFoundries, and Bosch, plus the ESMC joint venture with TSMC. On 10 June 2026, GlobalFoundries and Dutch startup Qualinx completed the continent's first fully European, end-to-end sovereign chip manufacturing flow at GF's Dresden fab . In the same month ESMC confirmed its 2027 production schedule after TSMC shipped DUV lithography equipment from Taiwan.

Dresden's cluster, branded Silicon Saxony, was built after reunification through sustained state investment that drew Siemens (later Infineon) and AMD (later GlobalFoundries). The city accounts for roughly 10% of European chip production and employs around 70,000 people across more than 2,000 companies in design, equipment, and materials.

With Magdeburg and Crolles cancelled, Dresden carries Europe's chip ambitions largely alone. The Commission's June 2026 Digital Decade scorecard placed European chip share at 9% against the 20% Chips Act target . The sovereign flow milestone and ESMC's confirmed schedule make Dresden the only European site with a near-term PATH to closing that gap.

More questions

How much EU funding is the Dresden chip cluster receiving?

The ESMC project secured approximately EUR 5 billion in public subsidies including EU Chips Act funding and German federal and state support. Individual fab expansions have received additional IPCEI and state aid.Source: European Chips Act funding announcements

What was the first sovereign chip manufactured end-to-end in Europe?

On 10 June 2026, GlobalFoundries and Dutch startup Qualinx completed the first fully European end-to-end sovereign chip manufacturing flow at GF's Dresden fab, producing a security-critical chip without any non-European step in the supply chain.Source: Lowdown european-tech-sovereignty briefing

Is Dresden the most important semiconductor manufacturing city in Europe?

Dresden is widely considered Europe's most important semiconductor city. It hosts fabs operated by Infineon, GlobalFoundries, Bosch, and the ESMC TSMC joint venture, accounting for roughly 10% of European chip production and employing around 70,000 people in the sector.Source: Lowdown european-tech-sovereignty briefing

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