Infineon has received funding approval from the European Commission for the construction of the Infineon Smart Power Fab in Dresden. The approval of the funding is part of the European Chips Act. The official funding approval from the Federal Ministry for Economic Affairs and Climate Protection, which is responsible for the disbursement of the EU Chips Act funding, is still pending. This is expected in the coming months. The new semiconductor factory is already receiving funding under the “IPCEI ME/CT” (“Important Project of Common European Interest on Microelectronics and Communication Technologies”) innovation program. The total funding for the Dresden site is around €1 billion. Construction work began in March 2023 and is progressing successfully according to the company. The opening is still planned for 2026.
Semiconductor factory to stabilize European supply chains in the automotive, security and industrial sectors
"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."
Semiconductors are driving decarbonization and digitalization
Infineon is investing a total of €5 billion in the expansion of the Dresden site. The German government has already approved the early start of construction. The new building will create up to 1,000 new jobs. This does not take into account the additional jobs in the area surrounding the investment. Experts assume a positive employment effect of 1:6. The Smart Power Fab will focus on technologies that drive decarbonization and digitalization, for example through efficient energy supply solutions for artificial intelligence.
In addition to the funding for the expansion of manufacturing in Dresden, Infineon is also using the “IPCEI ME/CT” to boost investment in research and development at other company locations. Under this innovation program, Infineon is investing a total of €2.3 billion in innovation projects at its sites in Germany and Austria. Between 2022 and 2027, the focus will be particularly on the areas of power electronics, analog/mixed-signal technologies, sensor technology and high-frequency applications.
Close collaboration with universities, research institutions and start-ups in Europe
Infineon is also planning extensive measures to strengthen cooperation between science and industry as part of EU funding programs. Close collaboration with universities, research institutions and start-ups in Europe is a central element of this. The company offers young talents a platform to develop and advance sustainable solutions. These activities promote the practical application of scientific findings and strengthen Europe as a location for innovation.
