According to Infineon, its investment in the 300mm Smart Power Fab in Dresden will support the EC's declared goal of reaching a 20% share of global semiconductor production in the EU by 2030
Infineon embarks on the construction of a new fab in Dresden, Germany. (Credit: Infineon Technologies AG)
Infineon Technologies has launched the construction of its new facility for analog/mixed-signal technologies and power semiconductors in Dresden, Germany.
The German semiconductor manufacturer expects to make an investment of about €5bn in the new Dresden fab.
Its management board apart from supervisory bodies approved the Dresden site following extensive analysis.
An early project launch has been authorised for the new fab by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). This allows the company to commence the construction before the European Commission (EC) has completed reviewing all legal subsidy aspects.
Infineon said that the project will be funded in line with the goals of the European Chips Act, subject to the state aid decision of the EC and the national grant procedure.
Besides, the company is seeking public funding of about €1bn.
The semiconductor manufacturer expects to commence production from the new fab in 2026.
Infineon CEO Jochen Hanebeck said: “We’re picking up the pace by expanding our production capacities in order to leverage the growth opportunities which the megatrends decarbonisation and digitalisation are offering us.
“We see structurally growing demand for semiconductors, for example for use in renewable energies, data centres 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.”
According to Infineon, its investment in the new fab will support the EC’s declared goal of reaching a 20% share of global semiconductor production in the EU by 2030.
The new fab is anticipated to generate about 1,000 highly qualified jobs.
The Dresden fab will enable Infineon to generate additional revenues on the order of the investment amount per year when it is operating at full capacity.