Infineon: Green Light For Infineon’s New Dresden Fab

The new facility for power semiconductors and analog/mixed-signal technologies is being built by Infineon Technologies AG. The Infineon Management Board and supervisory bodies approved the Dresden site after a thorough analysis. 

An early project launch has been authorized by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), which allows construction to start before the European Commission has finished reviewing all legal subsidy aspects. The project is to  be financially supported in accordance with the goals of the European Chips Act, subject to the European Commission’s state aid decision and the national grant procedure. Infineon is looking for roughly one billion euros in public funding.

The plant, whose production is scheduled to start in 2026, will receive a total investment from the company of about five billion euros. The amount invested here is the largest single investment in the history of the business.

In order to take advantage of the growth opportunities that the megatrends of decarbonization and digitalization are providing us with, we are stepping up the pace by increasing our production capacities, according to Infineon CEO Jochen Hanebeck. “We observe a structurally rising demand for semiconductors, for use in things like electro-mobility, data centres, and renewable energies. 

We are setting the stage by constructing the 300mm Smart Power Fab in Dresden to be able to successfully meet the growing demand for semiconductor solutions.

The European Commission has set a goal of having 20% of the world’s semiconductor production in the EU by 2030, and Infineon’s investment is a critical component of that goal’s accomplishment. Value chains in important European industries will be even better secured in the future thanks to semiconductor solutions from the Dresden Fab for industrial and automotive applications.

Furthermore, the investment made by Infineon strengthens the manufacturing foundation for the semiconductors that power digitalization and decarbonization. In data centres, small automotive motor control units, energy-efficient charging systems, power supply systems, and Internet of Things applications, analog/mixed-signal components are employed (IoT). Particularly intelligent and energy-efficient system solutions can be developed thanks to the interaction of power semiconductors and analog/mixed-signal components.

Infineon will be able to finish the project quickly and produce significant scale effects thanks to the expansion of production capabilities at the current Dresden site. The start of manufacturing operations is scheduled for fall 2026, with construction to start in 2023. A thousand highly qualified jobs will be produced by the expansion. When the Dresden Fab is operating at full capacity, Infineon will be able to generate additional revenues on the order of the investment amount each year.

The plant will be among the most eco-friendly manufacturing facilities of its kind and will be furnished with the most recent environmental technologies. Infineon is also establishing new manufacturing excellence standards in Dresden thanks to refined digitalization and automation. The new facility will be a part of “One Virtual Fab” that will be closely connected to the Infineon Villach facility. Infineon’s manufacturing facility for power electronics, based on the extremely effective 300-millimeter technology, will boost productivity and give the company more flexibility so that it can serve its customers more quickly.

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