3D InCites Podcast
3D InCites Podcast
From Pilot Lines To Fabs: How Europe Builds Semiconductor Resilience
Europe’s chip future is being built in real time, and the view from Munich is electric. We sit down with IMEC’s leadership and ESMC’s founding CEO to unpack how pilot lines, a major Dresden fab, and the EU Chips Act are reshaping the continent’s strategy—from research to high-volume manufacturing. Along the way, we track the evolution of Semicon Europa over 50 years, from a supplier-centric expo to a convening force that brings equipment makers, materials leaders, device companies, and end users into one space.
Our guests open the hood on what resilience actually looks like: a 28 nm to 12 nm FinFET roadmap with integrated RRAM for microcontrollers, a half‑million‑wafers‑per‑year target, and a hiring plan that scales with purpose-built training in Dresden and Taiwan. On the R&D front, IMEC’s expanded pilot line infrastructure—fueled by multi‑billion‑euro investment—helps Europe retain technology leadership while translating breakthroughs into products. We also examine advanced packaging, where 3D integration and chiplet architectures blur the line between front end and back end and create fresh opportunities for automotive and industrial electronics.
The conversation gets candid on sovereignty versus interdependence. Full autarky is a myth; durable relevance comes from global collaboration, reverse dependencies, and focus on areas where Europe is indispensable—lithography, metrology, materials, and increasingly packaging and system design. We talk talent, too: why workforce visibility, skills pipelines, and on-the-job training will determine whether ambitious ramps hit their marks. If you care about semiconductors, policy, and the future of manufacturing in Europe, this is your inside track.
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This episode of the 3D InCites podcast is sponsored by SEMI Europe. SEMI-Europe is the European arm of SEMI, the global industry association representing the electronics manufacturing and design supply chain, connecting more than 3,000 members and 1.3 million professionals worldwide. Learn more at semi.org slash EU.
Francoise von Trapp :Hi there. I'm Francoise von Trapp, and this is the 3D InCites Podcast.
Francoise von Trapp :Hi everyone. This week we are recording live from SEMICON Europa 2025 in Munich, Germany, and it is the 50th anniversary of Semicon Europa. And so we're going to be talking about this event's past, presence, and future. And we're also going to be talking about the theme, which is global collaborations for European Economic Resilience. And what role did Semicon Europa play in supporting this? And here to talk to me about all of this is Luc Vandenhoe from IMEC and Christian Koitsch from ESMC, not to be confused with TSMC. And we're going to get into that a little bit also. So welcome to the podcast, gentlemen. Before we dive in, I know Luke, you've been on the podcast before. Can you just update us on your role at IMEC?
Luc Van den hov:Well, I'm the president and CEO of IMEC. I've been doing that for the last 17 years.
Francoise von Trapp :And Christian.
Christian Koitch:I'm also the president and managing director of ESMC. But unlike Luke, ESMC is a joint venture that was formed two years ago. I was employee number one helping to set up ESMC since two years now.
Francoise von Trapp :And is it based in Dresden?
Christian Koitch:It's based in Dresden, yes.
Francoise von Trapp :And are you building a facility right now?
Christian Koitch:Yes. We are running a large construction site, building a clean room which has 45,000 square meters when it's done, and will output approximately half a million wafers per year.
Francoise von Trapp :And ESMC is a collaboration of TSMC and what other companies?
Christian Koitch:It's uh TSMC, um, which has 70% of the shares. And then our uh partners are also our customers. Uh we have partnered with uh three uh well-known European companies, uh Bosch, Infinian, and NXP. Okay.
Francoise von Trapp :That makes sense. Okay. So who has been to the most of the two of you Semicon Europas over the years? Does anybody remember the first one? I don't think any of us are old enough to remember the first one. When was your first semicon Europa?
Luc Van den hov:Well, to be very honest, uh I've been to so many semicon Europa that I don't remember when was my first time. Christian?
Christian Koitch:I do remember I graduated from university in 2004. Okay. And uh my first job was process engineer, iron implant, and metal in a six-inch facility. And uh for me, Semicon, the first semicon, was a completely new world. You know, I saw all these equipment suppliers, I was very astonished, uh very um uh impressed.
Francoise von Trapp :So where was the location of your first one? My first one was 2007 in Stuttgart.
Christian Koitch:Okay, I'm not sure. I was in Switzerland, so for me this was all Germany somewhere in the U.S.
Francoise von Trapp :Okay, so there was, I was talking to someone earlier, and there was one in it was in Geneva, I think, and then also Zurich after that. I didn't get on board until 2007, and I said, as I said, uh Stuttgart. And then there was a few years where it was going back and forth between Grenoble and Dresden. And then came here, I think, in about 2017? It was the first time I was back, and I think it's great here in Munich. And I think IMAC has been really partnered with ITF. When did you start co-locating ITF with Semicon Europa?
Luc Van den hov:I don't know, but it must be probably 10 years ago or so when we started doing that. Okay. Yeah.
Francoise von Trapp :Okay. What role do you think this event has played in the growth of semiconductors in Europe?
Luc Van den hov:Well, I I believe that uh I mean semi has been growing quite a bit. I think it started really as a show uh where especially the suppliers were present, uh equipment and material suppliers. But um but over the last couple of years I think semi has kind of increased its role and in in the sense that it's kind of bringing the entire ecosystem uh together. Also, like the end users, and I think for Europe this is very important in order to kind of stimulate the demand for uh advanced technologies. It's important to bring some of these end users, like the car manufacturers, the automotive industry, uh and and and many of the other end users of Europe, bring them together. And I think the the fora that have been uh uh organized uh as the one that is going on right now, um I think it's very important in order to bring this ecosystem together.
Francoise von Trapp :Question?
Christian Koitch:Yeah, um I mean maybe adding to what uh Luke said, um I think uh semiconductors is an industry which is uh hard to uh connect to from a general population point of view, yeah, because it's in a clean room, uh nobody can go there. Uh so um people understand the importance, they love ChatGPT, they love their uh uh smartphones, but uh seeing the industry behind uh you need platforms, forums like uh Semicon Europa in order to have the talents uh uh recognizing that semiconductor is such an exciting industry as it is.
Francoise von Trapp :So do you think it's done a lot to support the workforce development?
Christian Koitch:Uh I think I certainly think so, and uh I hope uh they continue doing this uh because uh at the moment ESMC has 80 employees, so 1920 still to go.
Francoise von Trapp :Oh my goodness.
Christian Koitch:Counting on uh on semicon uh to help.
Francoise von Trapp :Help with that. Okay. So Luke, we mentioned briefly before the partnership between Europa and um IMEC. Um so how has that partnership served IMEC over the years?
Luc Van den hov:Well, it has uh I I think in many aspects. Uh we're working together in very close sense to SEMI. Uh we are um of course co-organizing events uh as we're doing uh right now and tomorrow. Um but we also work together like on many of the the subjects. Uh I think Christian also already referred to uh workforce development, so we have a lot of activities together, uh, but also like uh on sustainability. I mean we have a very big program on sustainability, uh our SSTS program, where we bring together the entire ecosystem to work on kind of uh quantifying the effect of of the carbon footprint of advanced chip manufacturing, uh working on solutions to reduce that. Um we're doing that with the entire ecosystem. But SEMI also has a very important program on uh climate uh evolution, and so um and their focus is more on kind of the the lobbying and the government interactions, so so and and but our program kind of feeds uh with data into these uh these activities. So we work together on so many fronts.
Francoise von Trapp :Yeah. And it is more than just about the shows, right? I mean the shows help fund all of semi-Europe's efforts in policy building and creation. Christian, we started to talk a little bit about ESMC as a new entity in Europe. And um, can you explain a bit more about the organization and the role Semi-Europe and Semi-Europa has played in sharing your message?
Christian Koitch:Yes. I mean ESMC, the the the four letters uh have a certain resemblance to TSMC, and that is not a coincidence. I mean, uh it's our uh our mother, so to speak, but also it is no coincidence that it is not uh Germany semiconductor manufacturing company, but it is truly a European endeavor. It's also heavily supported by the European Union via the EU Chips Act. For me, um a very tangible, very memorable moment was when Lathe actually supported us in reaching out also to our neighbor countries. So SEMI is present uh in uh most of the countries in Europe and it can actually build that uh bridge so that we can collaborate with Poland, uh, Czech Republic, Slovakia, uh, because such a uh huge investment that uh we are doing with uh more than 10 billion euro really uh needs support uh from a lot of different trades from different countries and their semiconductor is is really instrumental in helping.
Francoise von Trapp :So the name ESMC is European Semiconductor Manufacturing Company.
Christian Koitch:Exactly.
Francoise von Trapp :Was it a strategic decision to call it that and not just call it Tem TSMC Europe?
Christian Koitch:We are a joint venture. Right. Okay. So in in that sense it was clear it is not TSMC Europe, but it is a joint venture, uh a different legal entity. Um and then the shareholders uh they uh went for ESMC as a name.
Francoise von Trapp :Okay.
Christian Koitch:And uh I do remember uh uh then we picked a logo, all these things that you do as a startup. That was very exciting. Yeah.
Francoise von Trapp :So with NXP and Infinian and Bosch all being partners, does that dictate the focus of your technology that will be manufactured there? Is it to support, you know, I mean I would say with Infinian it's probably power electronics, and maybe with um Bosch it's the mems and sensor side of things? Is that would that be a good assumption?
Christian Koitch:I would say um um both uh Bosch and Infinian, they are IDMs in part of their business. So uh Infinian does uh power semiconductors very well and Bosch uh does sensors very well. Uh for this, they don't need ESMC. This is about uh what uh is needed in terms of um uh to build a system and you need advanced logic. So our focus will be 28 nanometer uh uh CMOS going down to 12 nanometer FinFed. This is uh the two core technologies we are implementing with a special focus on new non-volatile memory uh because you know embedded flash comes to an end at a certain point, and we are featuring RRAM to provide a cost-optimal solution for microcontrollers for automotive industrial electronics. Uh, these are the target applications for ESMC. Okay.
Francoise von Trapp :Um Luke, with IMAC, how have things shifted with regard to the EU Chips Act funding? Has that been able to help IMAC do further development?
Luc Van den hov:Absolutely. Uh I think the Chips Act is extremely important for Europe as a whole, uh as Christian just explained uh on the manufacturing side, but also on the RD side. Uh, you know, a very important part of the CHIPS Act was Pillar One, we're focusing on establishing pilot lines to make sure that we can maintain our technology leadership. Uh and uh one of the well, the biggest uh uh pilot line actually is uh is positioned at iMac. So it's kind of an extension of the infrastructure that we've been building up uh over the last uh decades, which uh has evolved into what is today the world's largest independent RD pilot line. And with the CHIPS Act, we can embark on a massive expansion project of that uh facility, adding about a 2.5 billion euro of investment, which for RD is massive. And so this will make sure that we can maintain our leadership position for the next uh decade, I would say.
Francoise von Trapp :Okay. Um now you both just gave keynotes this morning around the topic of global collaborations for European economic resilience. Can you just give us a little recap of what you talked about, Luke?
Luc Van den hov:Well, I I think that something like full resilience, I think full autonomy in a certain technology, I think that that is uh is not what we should strive for. Because I'm I'm very convinced that uh the progress that we've seen in the semiconductor industry, in the world, uh how it has evolved over the last couple of decades, is clearly the result of global collaboration and specialization. Uh the technology becomes so difficult these days that it is you you have to bring together the best of the best uh in order to realize that. And it's impossible for each region to be the best in everything. So we have to make sure that we we continue to strive for collaboration uh and and making sure that uh that we work together. You create dependencies, but that means that for Europe we also have to create reverse dependencies. Uh, and and and that I think is what why the CHIPS Act is so important. It is the way to kind of strengthen our strengths and make sure that that Europe is also relevant in the global uh global ecosystem. And I think we we do have phenomenal strengths in in Europe. I mean, you can't make a chip anywhere in the world without European technology. I mean, ASML is uh and and the processes on ASML that we work with, I mean, are are kind of everybody needs it. So uh but on the other hand, I think it's also uh kind of unrealistic to dream that we are going to do everything in Europe without having to be dependent on on other regions. So so but I think the whole message is if we want to strengthen Europe in this global value chain, we have to make sure that we really keep our relevance, and that's why I think uh Chipsact is so important. To uh build uh more manufacturing capability. I think ESMC is a fantastic example, uh, and I think we should do more of that. Um make sure that we create these these pilot lines in order also to stimulate the demand, because to be very frank, Europe does not have such a big supply challenge at this moment, it more has a demand challenge. We need to make sure that our end users that they are moving along and really create a strong demand for advanced chips because that's what is needed in order to be leading in many of the application domains, like automotive, like AI. So that's why I think the ChIPS Act really has to stimulate that and focus that. And that's what the role where pilot lines are extremely important to create that demand.
Francoise von Trapp :I'm so glad to hear you say that because for years I've always thought that it is the global collaboration that has made this industry so successful. And ever since I think maybe the pandemic, we've started seeing these localization and people you know talking about making sure you have a local ecosystem and local supply chain. And I've been concerned that that would be at the expense of global collaboration, which has really been what's made the industry such a success. So I'm really glad to hear you say that. Um, Christian?
Christian Koitch:Yeah, I mean um uh obviously ESMC is uh uh part of the solution for more uh European sovereignty. That is the reason why the EU commission decided uh uh that uh ESMC can be supported by the EU CHIPS Act. And uh our last big public information session was our groundbreaking. Yeah, everybody was there, Miss von der Leyen, uh the German chancellor, uh all across our shareholders. Now uh this has been a year ago, so we gave an update on the project. Yeah, everybody is keen on understanding is it uh on track? Uh, where are you? We showed pictures, uh uh big cranes, shell construction on the way to inform everybody, all the sub the suppliers, that they get ready uh when the FAP is ramping, that everybody uh has done his homework.
Francoise von Trapp :So you're on track for construction.
Christian Koitch:Yes.
Francoise von Trapp :And then after construction, it all the tooling happens, right? And then you mentioned earlier that you have 80 employees and you need how many more?
Christian Koitch:1120. Okay.
Francoise von Trapp :So do you think that will be on track for time to open, or could that hold you back from being on time?
Christian Koitch:First of all, uh we differentiate between shell construction. This is currently uh what we're doing. Yeah. Afterwards, uh the technical infrastructure will be installed, all the specialty systems that you need in order to run a fab. Um and then at some point equipment move in and technology ramp. We do everything well prepared, yeah. Um especially on the training side, this should not be underestimated. Semiconductor technology has grown very complex. I started as an implant engineer, but I couldn't run an implant now anymore. Yeah, so uh things became more complex. And uh we are setting up training facilities uh also uh in Dresden, also in Taiwan, in order to uh um be prepared uh when our operational people join, that they get the appropriate training uh to be ready when the Fab is ramping.
Francoise von Trapp :Aaron Ross Powell Okay. One of the things in the US that we've been struggling with is making sure that there's advanced packaging at um scale in the country, which I guess now MCOR is building its site in Peoria, Arizona. What are we doing in Europe to support the advanced packaging side of things? To be able to do the packaging on shore.
Luc Van den hov:Yeah, I think uh here also the pilot lines are uh providing uh I think a lot of activities in on the research and prototyping uh sphere for both. I mean, when we talk about advanced packaging, I think it's a very broad spectrum. It goes from packaging uh kind of 3D heterogeneous integration, stacking uh of layers, which I think is very close to the front end. So this this boundary between front-end and back-end packaging is is kind of blurry to some extent. And I think TSMC is a very good example of uh kind of covering uh both aspects. Uh and I think it's it's very important for Europe also to to uh focus on that also on the manufacturing. There are a couple of initial initiatives that are being launched, but uh but I think in the future we're going to see more and more uh need for this chaplet uh kind of integration techniques. Uh, like automotive is one of the very clear domains where we will see a very strong demand from that side. So we are setting up several activities on also on the design of these uh chaplet uh configurations, uh, but we will also need to make sure that we further boost the manufacturing side. Okay. And there are a couple of initiatives in the works.
Francoise von Trapp :Okay. So my last question is kind of a moving target. Um, because we all know that things keep changing. But uh as the US imposes tariffs on the rest of the world, what impact do you think that will have on the European semiconductor industry?
Christian Koitch:I mean, on the industry as a whole, I'm not so sure. Yeah, it is difficult for me to comment uh on ESMC in particular. I mean, the whole idea is of setting up a local manufacturing for local demand. Yeah, so in that sense, uh the tariffs do not play a role for ESMC uh as such, because our business model is European to start with.
Luc Van den hov:Well, I think that uh tariffs, of course, uh can have a strong impact. But what is probably even more uh important is the unpredictability of tariffs, uh, kind of how the situation is changing and uh whether like semiconductors are exempt or not from the tariffs, so it's all extremely confusing, and I think that creates a lot of uncertainty for the industry, and that's the biggest effect, I believe. But as I said before, I I don't think that uh systems like tariffs are are going to impede the collaboration that is absolutely needed in order to drive this industry forward. So so at the end, I think everybody realizes that that we have to make sure uh that we we focus on collaboration and make sure that that continues to be the drive for innovation in our industry. Okay.
Francoise von Trapp :Any final comments you want to make? I think we said it all. Thank you very much. Thank you very much. Thank you so much for joining me today. It's been a pleasure.
Luc Van den hov:You're welcome. Thank you. Bye-bye.
Francoise von Trapp :We're in the home stretch now. Next week, catch our final episode of season five of the 3D Insights podcast. I'll be reminiscing with our members about Semicon Europa's past and how they see advanced packaging evolving in Europe. You won't want to miss it. There's lots more to come, so tune in next time to the 3D Insights podcast. The 3D Insights Podcast is a production of 3D Insights LLC.