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Infineon opens €5 billion Smart Power Fab in Dresden

Infineon Technologies has opened its Smart Power Fab in Dresden, Germany – described as the world's largest fab for power semiconductors and analog/mixed-signal technologies.

The EUR 5 billion investment opens several months ahead of the original schedule and is backed by approximately EUR 1 billion in public funding under the EU Chips Act and the IPCEI ME/CT programme.

Ground was broken on the facility in May 2023. The fab uses 300mm wafers and will produce power semiconductors and analog/mixed-signal chips for applications in AI data centres, electric vehicles, renewable energy and industrial systems. At full capacity, the facility is expected to create up to 1,000 highly skilled jobs and could add as much as EUR 5 billion in annual revenue.

The opening is described as a signal for German and European semiconductor ambitions. 

"We're opening our new plant at just the right time," says Jochen Hanebeck, CEO of Infineon Technologies AG, in a press release. "Our Smart Power Fab is creating urgently needed capacities for the key technologies of the future, for everything from energy supply for AI data centers to software-defined vehicles and renewable energies. Infineon is thus giving an important impulse in making the global AI revolution possible and securing supply chains in critical industries"

The Smart Power Fab uses rigorous digitalisation to accelerate production to twice as fast as in the past, depending on demand. The building and machine layout were pre-planned and optimised using a digital twin, and system clearance is supported by AI algorithms. A connection to Infineon's Villach plant as "One Virtual Fab" makes qualification of processes and products significantly faster than before.


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