Infineon Technologies has officially opened its Smart Power Fab in Dresden, several months ahead of schedule. The new plant represents the largest single investment in the company’s history, with five billion euros committed, and is among the biggest industrial projects in Germany, creating 1,000 new direct jobs.
With this expansion, Infineon has doubled its manufacturing capacity at the Dresden site, making it the world’s largest factory for intelligent power semiconductors and analog/mixed-signal technologies.
The Smart Power Fab is designed from the ground up for speed and flexibility. Extensive digitalization means that, depending on demand, production can run up to twice as fast as before. The building and optimal machine layout were planned and refined using a digital twin, while AI algorithms support system and process qualification.
By linking the Dresden site with Infineon’s Villach plant as a “One Virtual Fab,” processes and products can be qualified much more quickly, enabling faster ramp-up and allowing Infineon to respond more effectively to market opportunities, including those driven by AI.
Chips produced in Dresden will play a key role in efficiently powering AI data centers in the future, alongside a wide range of industrial and automotive uses. These include wind and solar installations and software-defined vehicles.
A good example is intelligent switches that not only control loads, but also monitor electrical flows. By combining power semiconductors with analog/mixed-signal components, Infineon can deliver highly energy-efficient, intelligent system solutions, hence the Smart Power Fab name.
With this expansion, the Dresden site further cements its status as a global leader in power semiconductors and analog/mixed-signal technologies. It also strengthens Europe’s position within the “Silicon Saxony” semiconductor cluster in and around Dresden.
Beyond the 1,000 new jobs at Infineon itself, the fab is expected to have a strong positive impact on the regional economy and supplier ecosystem; studies suggest that each cleanroom job can generate up to six additional jobs in related fields. Today, more than 80,000 people already work in the Silicon Saxony cluster.
The Smart Power Fab also raises the bar for sustainable chip manufacturing. Modern production technologies and optimized energy and resource management significantly cut energy use and improve the environmental footprint.
The new facility operates without natural gas and reduces water consumption through advanced treatment and closed-loop systems. Around 90 percent of the water used is planned to be recirculated, which in turn makes it possible to recover up to 45 percent of the energy consumed in the process.
Leadership Comments
“We’re opening our new plant at just the right time,” says Jochen Hanebeck, CEO of Infineon Technologies AG. “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. By taking this step, we are strengthening our global vanguard position as a leading manufacturer of power semiconductors and analog / mixed-signal technologies.”
“Infineon’s new Smart Power Fab sends out a powerful message about Germany and Europe as a center of industry,” says German Federal Chancellor Friedrich Merz. “This investment shows that competitive, cutting-edge semiconductor production in our country is possible. Power semiconductors are a key technology for the energy transition, the future of mobility and our AI infrastructure – meaning they are crucial to make our economy fit for the future. The expansion of Infineon’s production capacity in Dresden also strengthens our technological sovereignty and the resilience of important supply chains in Europe.”
Dr. Karsten Wildberger, German Federal Minister for Digital Transformation and Government Modernization, says: “What is being produced here in Dresden secures jobs and creates value in Germany, because these cutting-edge chips are at the heart of key technologies such as electric vehicles, wind turbines, and the power infrastructure for AI data centers. The Smart Power Fab marks another milestone on Germany’s path toward digital sovereignty and demonstrates that Germany can move fast, Germany can deliver high-tech innovation, and Germany can shape the future.“
Saxony’s Minister-President Michael Kretschmer says: “Microelectronics is the key technology of the 21st century, the foundation of innovation, competitive strength and economic progress. The choice of Dresden, home to Europe’s largest microelectronics cluster, represents a decisive location advantage. Infineon’s new Smart Power Fab makes this unique ecosystem stronger and shows that major industrial projects can be implemented securely and swiftly with the right basic prerequisites. This sends a strong signal about Dresden as an industrial location and about the future of microelectronics in Europe.”
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