Infineon secures EU Chips Act funding for smart power fab in Dresden
Infineon Technologies has secured European Commission approval for funding under the EU Chips Act. This investment will advance its Smart Power Fab in Dresden, strengthening Europe's semiconductor industry.
Final approval from the German Federal Ministry for Economic Affairs and Climate Action (BMWK) is expected soon.
Infineon’s Dresden site will receive approximately EUR 1 billion in funding, with the total investment for the expansion reaching EUR 5 billion. Construction of the Smart Power Fab started back in May 2023, and the facility is currently planned to open in 2026. The project is also supported by the Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT) initiative.
According to Infineon CEO Jochen Hanebeck, the investment will bolster Dresden’s role as a semiconductor hub, enhance European supply chain stability, and support key industries such as automotive, security, and industrial applications. The development is expected to generate up to 1,000 direct jobs.
The Smart Power Fab will focus on technologies that further accelerate decarbonisation and digitalisation, for example, by driving energy-efficient power solutions for Artificial Intelligence.
In parallel with its Dresden expansion, Infineon is leveraging the IPCEI ME/CT program to drive investments in R&D at other corporate locations. Between 2022 and 2027, Infineon says it will have invested EUR 2.3 billion in innovation projects at its sites in Germany and Austria – focused on power electronics, analog/mixed-signal technologies, sensor technologies and radio frequency applications.
