The European Commission approved funding for the Infineon Technologies Smart Power Fab in Dresden under the European Chips Act. In the next months, the Federal Ministry for Economic Affairs and Climate Action (BMWK), which is in charge of allocating EU Chips Act funds, is anticipated to provide its formal financing approval.
Furthermore, the European Commission’s IPCEI ME/CT (“Important Project of Common European Interest on Microelectronics and Communication Technologies”) innovation program is already providing funding for the Smart Power Fab.
The total funding for the Dresden site amounts to around one billion euros. Construction began in March 2023 and is progressing successfully. The Fab opening is planned for 2026.
Five billion euros will be spent by Infineon to expand its Dresden location. The project’s early commencement was already authorized by the German federal government. Not counting the jobs created in the investment ecosystem, the new development is expected to generate up to 1,000 new jobs.
A favorable job effect of 1:6 is assumed by experts. The Smart Power Fab’s core will be centered on technologies that further speed up digitalization and decarbonization, such as enabling energy-efficient power solutions for AI.
Infineon is using the IPCEI ME/CT innovation initiative to stimulate investments in R&D at other corporate locations in addition to the support for the growth of manufacturing in Dresden. Power electronics, analog/mixed-signal technologies, sensor technologies, and radio frequency applications will be the main areas of focus for Infineon’s 2.3 billion euro innovation initiatives at its locations in Germany and Austria between 2022 and 2027.
Infineon is also preparing extensive initiatives to encourage collaboration between industry and science as part of the EU funding schemes. Close cooperation with European start-ups, research institutes, and universities is a key component.
Infineon provides a forum for the development and advancement of sustainable technologies for gifted youth. These initiatives enhance Europe’s standing as a center of innovation and encourage the practical application of scientific knowledge.
Leadership Comments
“This government-supported investment by Infineon strengthens the position of Dresden, Germany and Europe as a semiconductor hub and promotes a state-of-the-art innovation and production ecosystem for microelectronics,” says Jochen Hanebeck, CEO of Infineon. “We are increasing semiconductor capacity in Europe and thus helping secure stable supply chains in automotive, security and industrial fields.”
