© Infineon Business | March 16, 2021
Infineon's expansion plans bring new jobs to Dresden
The German chip manufacturer Infineon plans to invest around EUR 1.1 billion in its Dresden location over the coming years.
In addition, the company plans to hire more employees; around 100 more jobs are planned. That would raise the workforce at the site – by the end of 2021 – to 2900, according to a report by Oiger magazine. "Our capacities are now at almost 100 percent," said Thomas Morgenstern, location manager, explaining the reasoning behind the expansion plans. The demand for semiconductors from Dresden is enormous. Many orders come from the automotive sector, which started up early—out of the corona crisis—and now needs more power electronics for its new electric cars. Therefore, an expansion of the production capacities—especially for these market segments—in the already existing factory modules is planned; an investment of around EUR 1.1 billion. Furthermore, the Infineon management is also considering building a fourth factory module on the premises for a further EUR 1.3 billion. It should focus on power electronics. Whether and to what extent this fourth factory module will be build in Dresden-Klotzsche, depends on the market situation and state subsidy commitments. “A subsidy share of 25 percent or more would be necessary,” said the second location manager, Raik Brettschneider, in the Oiger interview. Infineon Dresden has now submitted a proposal/idea for the latest microelectronics funding program "Important Projects of Common European Interest - 2" (Ipcei 2) to Federal Economics Minister Peter Altmaier. At the same time, the company is also trying to get IPCEI-2 grants for the planned expansions in the existing factory modules. "That is correct. We are planning to expand the existing production capacities in Dresden with around 1.1 billion euros over the next five years”, said company spokesman Gregor Rodehüser when asked by Evertiq. “It has not yet been decided whether a fourth factory module will also be build. The construction of a new factory module in Dresden will be examined as one of several possible options if the market continues to develop positively in line with the growth prospects." (edited)
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