German government approves Infineon Dresden fab funding
Construction of the new factory proceeding as planned, building shell almost complete
Infineon Technologies has received final approval for the funding of its new plant in Dresden (Smart Power Fab) from the German Federal Ministry for Economic Affairs. This follows the EC's approval of funding under the European Chips Act on 20th February 2025.
The fab, which will be focused on silicon-based power electronics using 300-mm technology, is planned to be opened in 2026.
Infineon, which is expanding the site to meet customer demand for example for renewable energies, efficient data centres and electromobility, will invest €5b of its own money, creating as many as 1,000 new jobs. This figure does not include additional jobs which will be generated in the investment's ecosystem: Experts expect a positive job effect of 1:6. In addition, Infineon is also investing in Dresden through its participation in the joint venture European Semiconductor Manufacturing Company (ESMC) GmbH.
"The final funding approval for our Smart Power Fab is an important milestone for us as a company and is a clear signal to the European semiconductor ecosystem," says Infineon CEO Jochen Hanebeck. "We are grateful to the German federal government, the Free State of Saxony and to the European Union for their support. The semiconductors we manufacture in Dresden are our contribution to making the future value chains of key European Âindustries even more robust."
Construction of the Smart Power Fab, currently one of Germany's largest building projects, is proceeding as planned, with the building shell currently nearing completion. Infineon held a topping-out ceremony together with all those involved in construction activities in early April this year.
