The Bundeskartellamt has cleared the acquisition of 10 percent shares each by Bosch, Infineon, and NXP in the European Semiconductor Manufacturing Company (ESMC), which is set to build a new semiconductor factory in Dresden, Germany. This decision highlights the commitment of both the European Union and Germany to enhance semiconductor manufacturing within Europe, especially in light of recent geopolitical challenges.

Andreas Mundt, President of the Bundeskartellamt, stated that ensuring secure access to semiconductors is crucial for the German industry. The authority's examination confirmed that the participation of these three companies in the new factory aligns with merger control requirements, although it did not assess the public funding aspects under state aid law.

TSMC, the world's largest contract semiconductor manufacturer, will operate the new factory, which is expected to significantly contribute to the supply of semiconductor chips. Bosch, Infineon, and NXP, all major technology companies, rely on these chips for their products and also utilize contract manufacturers like TSMC.

The Bundeskartellamt evaluated whether the involvement of Bosch, Infineon, and NXP would hinder other customers' access to essential semiconductor chips. It also considered the potential impact on other contract manufacturers' ability to find customers. The authority focused on micro controlling units (MCUs), which are increasingly used in various products, including automobiles.

Ultimately, the Bundeskartellamt found no significant concerns, noting the presence of Global Foundries, a direct competitor, in Dresden, which ensures alternative supply options. The limited access to ESMC's capacity for the three companies and the anticipated expansion of semiconductor manufacturing capacities globally further alleviated concerns about market access.