German government gives green light for funding Infineon’s new factory in Dresden

Infineon has received the final confirmation from the Federal Ministry of Economics for the funding of its new plant in Dresden (Smart Power Fab).

With the expansion of the site, Infineon will meet customer demand for renewable energies, efficient data centers and electromobility, for example. Infineon itself is investing five billion euros, creating up to 1,000 new jobs, although this does not yet include the additional jobs created in the vicinity of the investment.

Experts assume a positive job effect of 1:6 (source: ZVEI study). Infineon is also investing in Dresden through its stake in the joint venture “European Semiconductor Manufacturing Company (ESMC) GmbH”.

“The final confirmation of funding for our Smart Power Fab is an important milestone for us as a company and a strong signal for the European semiconductor ecosystem,” says Jochen Hanebeck, CEO of Infineon. “We would like to thank the German government, the Free State of Saxony and the European Union for their support. With the semiconductors manufactured in Dresden, we are helping to make the value chains of key European industries even more robust in the future.”

With the Smart Power Fab, Infineon is helping to strengthen European supply chains in the field of microelectronics and is also consolidating the position of Dresden and Silicon Saxony as the largest semiconductor hub in Europe.

The European Commission had already granted approval for the funding by the German government on February 20. The Smart Power Fab is being funded under both the European Chips Act and the IPCEI ME/CT innovation program (“Important Project of Common European Interest on Microelectronics and Communication Technologies”). The total funding for the Dresden site amounts to around 1 billion euros.

The construction of the Smart Power Fab – currently one of the largest construction sites in Germany – is progressing according to plan. The shell of the building is now almost complete. At the beginning of April, Infineon celebrated a topping-out ceremony together with all those involved in the construction site. Infineon officially broke ground in May 2023, after the German government had previously approved the early start of the project. Production is scheduled to start in 2026.