According to Infineon's press release, the European Commission has approved funding for Infineon's Smart Power Fab in Dresden under the European Chips Act, with expected approval from Germany's Federal Ministry for Economic Affairs and Climate Action in the coming months. The fab also benefits from the European Commission's IPCEI ME/CT program, totaling about EUR1 billion (approx. US$1.05 billion) in funding. Construction began in March 2023, and the facility is set to open in 2026.
Jochen Hanebeck, CEO of Infineon, highlighted that this government-backed investment would bolster Dresden's position as a semiconductor hub and foster a leading-edge ecosystem for microelectronics in Europe. He also noted that the expansion would enhance regional semiconductor capacity and fortify supply chains in the automotive, security, and industrial sectors.
According to Infineon, the company is investing EUR5 billion to expand its Dresden facility, which is expected to create up to 1,000 jobs, with each position potentially generating six more in the ecosystem. The Smart Power Fab will focus on technologies that promote decarbonization and digitalization, like energy-efficient solutions for AI.
Infineon is leveraging the IPCEI ME/CT program to boost R&D at various sites, with plans to invest EUR2.3 billion from 2022 to 2027 in Germany and Austria, concentrating on power electronics, analog/mixed-signal, sensor, and radio frequency technologies.
