Infineon Smart Power Fab receives EU Chips Act funding approval
The European Commission has approved funding under the European Chips Act for Infineon's Smart Power Fab in Dresden, bringing the total funding for the site to around €1 billion.
The fab, which will be focused on silicon-based power electronics using 300-mm technology, is planned to be opened in 2026.
The official funding approval from the German Federal Ministry for Economic Affairs and Climate Action (BMWK), which is responsible for the disbursement of EU Chips Act funding, is expected within the next few months.
The fab is already receiving support under the European Commission’s IPCEI ME/CT (Important Project of Common European Interest on Microelectronics and Communication Technologies) innovation program.
"This government-supported investment by Infineon strengthens the position of Dresden, Germany and Europe as a semiconductor hub and promotes a state-of-the-art innovation and production ecosystem for microelectronics," says Jochen Hanebeck, CEO of Infineon. "We are increasing semiconductor capacity in Europe and thus helping secure stable supply chains in automotive, security and industrial fields."
Infineon is investing a total of €5b in the expansion of its Dresden site. The German federal government previously approved the early start of the project. The new development will create up to 1,000 new jobs, not including the additional jobs created in the ecosystem of the investment. Experts assume a positive job effect of 1:6.
In addition to the funding for the expansion of manufacturing in Dresden, Infineon is also leveraging the IPCEI ME/CT innovation program to drive investments in research and development at other corporate locations.
Between 2022 and 2027 Infineon will have invested €2.3 billion in innovation projects at its sites in Germany and Austria, concentrated in the fields of power electronics, analogue/mixed-signal technologies, sensor technologies and radio frequency applications.
As part of the EU funding programs, Infineon is furthermore planning comprehensive measures to promote partnership between science and industry. A central element is close collaboration with European universities, research institutions and start-ups.
