Infineon opens new factory in Dresden; Completion is scheduled for 2026; Smart Power Fab will create 1000 new jobs

Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) is starting construction of a new analog/mixed signal and power semiconductor manufacturing plant. After careful consideration, Infineon’s board and supervisors have given the green light to the Dresden site. The German Federal Ministry for Economic Affairs and Climate Action (BMWK) has approved an early start for the project, which means that construction could begin before the European Commission’s review of legal subsidy aspects is completed. In accordance with the decision of the European Commission on state aid and the national grant procedure, the project will be funded in accordance with the objectives of the European Chip Law. Infineon is seeking government funding of around one billion euros. The company plans to invest about five billion euros in the plant, which should start production in 2026. This is the largest single investment in the history of the company.

“We are picking up momentum by expanding our manufacturing capacity to capture the growth opportunities that the decarbonization and digitalization megatrends offer us,” says Infineon CEO Jochen Hanebeck. “We see a structurally growing demand for semiconductors, for example for use in renewable energy, data centers and electric vehicles. With the construction of the 300 mm Smart Power Fab in Dresden, we are creating the preconditions necessary to successfully meet the growing demand for semiconductor solutions.”

Infineon’s investment is a significant contribution to the European Commission’s stated goal of achieving a 20% share of global semiconductor production in the EU by 2030. better in the future.

In addition, Infineon’s investment strengthens the manufacturing base of semiconductors, which contribute to decarburization and digitalization. Analog/mixed components are used in power systems such as energy efficient chargers, small car engine controls, data centers and Internet of Things (IoT) applications. The interplay of power semiconductors and analog/mixed signal components results in particularly energy-efficient and intelligent system solutions.

The expansion of production capacity at the existing site in Dresden will allow Infineon to complete the project quickly, as well as provide significant economies of scale. Construction is due to start in 2023, with production activities scheduled to start in autumn 2026. The expansion will create about 1,000 highly skilled jobs. Operating at full capacity, Dresden Fab will allow Infineon to generate additional revenues on the order of the investment each year.

The plant will be equipped with the latest environmental technologies and will become one of the most environmentally friendly production facilities of its kind. With advanced digitalization and automation, Infineon is also setting new quality standards for production in Dresden. The new factory will be closely linked to the Infineon Villach site as “One Virtual Fab”. This power electronics manufacturing facility, based on highly efficient 300mm technology, will increase efficiency levels and give Infineon the added flexibility to supply its customers faster.