Infineon Technologies, a leading semiconductor manufacturer, has announced its biggest single investment of five billion euros to construct a new semiconductor plant in Dresden. The new plant will be located adjacent to the existing Infineon Fab, and it will be closely linked to the Austrian site in Villach, which will operate as “One Virtual Fab.” This project is in line with Infineon’s goal of a green and digital transformation of society.
On Tuesday, the ceremonial start of construction was celebrated with political celebrities, including the mayor and the President of the EU Commission, attending the event. Dresden has been hailed as a digital lighthouse in Europe by EU Commission President Ursula von der Leyen. Furthermore, Infineon will be receiving one billion euros in subsidies from the EU Council and Parliament after the Chips Act has been agreed.
The new semiconductor factory, called Smart Power Fab, aims to contribute to the transformation of society by driving forward decarbonization and digitization. Preparatory measures are currently underway at the site, and the shell construction is planned to commence in autumn with production starting three years later.
The Smart Power Fab is expected to create 1,100 jobs, who will bring annual sales of five billion euros to Infineon. Federal Chancellor Olaf Scholz has stated that the chips manufactured in Dresden will help secure jobs and make the industry, from medium-sized companies to large corporations, more resilient.
Saxony’s Prime Michael Kretschmer highlighted that the project would increase “the attractiveness of Silicon Saxony as a competence location for the global semiconductor industry.” Dresden’s Lord Mayor Dirk Hilbert has also praised the excellent interaction between companies, institutes, startups, and administration and politics at the chip factory.
The German Ministry of Economic Affairs granted approval for the early start of the project in February. This approval means that work can already begin during the state aid assessment by the European Commission.
Overall, the new semiconductor plant in Dresden is a massive investment and Infineon’s biggest single investment yet. The project is expected to have a significant impact not only on the company but also on the sustainable transformation of society.
