Infineon Technologies has announced it is starting construction of its new plant for analog/mixed-signal technologies and power semiconductors in Dresden Germany. The chipmaker is still awaiting confirmation of the expected €1 billion in subsidies from the European Commission. “The German Federal Ministry for Economic Affairs and Climate Action (BMWK) has approved an early project launch, meaning that construction can already begin before completion of the inspection of legal subsidy aspects by the European Commission,” the company said in a press release. “Subject to the European Commission‘s state aid decision and the national grant procedure, the project is to be funded in accordance with the objectives of the European Chips Act.”
The manufacturer plans to invest a total of approximately 5 billion euros in the plant and is seeking additional public funding of around one billion euros. The project constitutes the biggest single investment in the company‘s history. Infineon says the new Smart Power Fab will also generate around 1000 new jobs.
“We‘re picking up the pace by expanding our production capacities in order to leverage the growth opportunities which the megatrends decarbonization and digitalization are offering us,“ said CEO Jochen Hanebeck. “We see structurally growing demand for semiconductors, for example for use in renewable energies, data centers and electro-mobility. By building the 300mm Smart Power Fab in Dresden we are establishing the prerequisites necessary to successfully meet the rising demand for semiconductor solutions.”
In addition, the investment strengthens the manufacturing basis for the semiconductors that drive decarbonization and digitalization. Analog/mixed-signal components are used in power supply systems, for example in energy-efficient charging systems, small automotive motor control units, in data centers and in applications for the Internet of Things (IoT). The interaction of power semiconductors and analog/mixed-signal components makes it possible to create particularly energy-efficient and intelligent system solutions.
The company says the new plant, expected to begin production in 2026, will be equipped with the latest in environmental technologies and will be among the most environmentally friendly manufacturing facilities of its kind. It will be closely linked with the Infineon Villach site as ‘One Virtual Fab’. This manufacturing complex for power electronics based on highly efficient 300-millimeter technology will increase efficiency levels and give Infineon additional flexibility in order to supply its customers faster.