Germany greenlights €1B in support for Infineon's massive Dresden fab
Infineon Technologies has secured final approval from the German Federal Ministry for Economic Affairs for public funding to support its EUR 5 billion investment in a new semiconductor manufacturing fab in Dresden (Smart Power Fab).
The new plant, currently one of the largest construction projects in Germany, is expected to generate up to 1,000 direct jobs, with broader economic impacts estimated to support an additional 6,000 positions throughout the supply chain and regional ecosystem. In addition, Infineon is also investing in Dresden through its participation in the joint venture "European Semiconductor Manufacturing Company (ESMC) GmbH".
"The final funding approval for our Smart Power Fab is an important milestone for us as a company and is a clear signal to the European semiconductor ecosystem," says Infineon CEO Jochen Hanebeck, in a press release. "We are grateful to the German federal government, the Free State of Saxony and to the European Union for their support."
The facility will serve critical sectors such as renewable energy, electromobility, and data centres, reinforcing Dresden’s role as a semiconductor hub within “Silicon Saxony.” The project is backed by approximately EUR 1 billion in public funding through the European Chips Act and the IPCEI ME/CT initiative (Important Project of Common European Interest on Microelectronics and Communication Technologies).
Construction began in May 2023 following an early launch approval by the federal government. The building shell is nearing completion, and Infineon held a topping-out ceremony in early April this year. Construction is proceeding as planned, and production is slated to start in 2026.