Infineon Technologies to Build New Plant for Analog/Mixed-Signal Technologies and Power Semiconductors

Rendering of Infineon’s Smart Power Fab in Dresden: The investment strengthens the manufacturing basis for semiconductors that drive decarbonization and digitalization.

(IN BRIEF) Infineon Technologies has announced the construction of a new plant in Dresden for analog/mixed-signal technologies and power semiconductors. The German Federal Ministry for Economic Affairs and Climate Action has approved the early project launch, enabling construction to begin before the completion of legal subsidy aspects by the European Commission. The project, subject to the European Commission’s state aid decision and the national grant procedure, will be funded in accordance with the objectives of the European Chips Act, with Infineon seeking public funding of around one billion euros. The company plans to invest a total of approximately five billion euros in the plant, which is set to begin production in 2026. When operating at full capacity, the Dresden Fab will create approximately 1,000 highly qualified jobs and will be among the most environmentally friendly manufacturing facilities of its kind. The plant will be closely linked with the Infineon Villach site to create a manufacturing complex for power electronics and increase efficiency levels.

(PRESS RELEASE) MUNICH, 16-Feb-2023 — /EuropaWire/ —  Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY), a German semiconductor manufacturer, has announced the start of construction for a new plant for analog/mixed-signal technologies and power semiconductors. The Dresden site has been approved by the Infineon Management Board and supervisory bodies, with an early project launch approved by the German Federal Ministry for Economic Affairs and Climate Action. Subject to the European Commission’s state aid decision and the national grant procedure, the project will be funded according to the objectives of the European Chips Act, with Infineon seeking public funding of around one billion euros. The company plans to invest a total of approximately five billion euros in the plant, which is set to begin production in 2026, making it the largest single investment in the company’s history.

The investment by Infineon will contribute significantly to achieving the European Commission’s objective of reaching a 20 percent share of global semiconductor production in the EU by 2030. The semiconductor solutions produced at the Dresden Fab will help secure value chains in key European industries and drive decarbonization and digitalization. Analog/mixed-signal components are used in power supply systems, energy-efficient charging systems, small automotive motor control units, data centers, and applications for the Internet of Things (IoT), while power semiconductors and analog/mixed-signal components can be combined to create particularly energy-efficient and intelligent system solutions.

“We’re picking up the pace by expanding our production capacities in order to leverage the growth opportunities which the megatrends decarbonization and digitalization are offering us,” says Infineon CEO Jochen Hanebeck. “We see structurally growing demand for semiconductors, for example for use in renewable energies, data centers and electro-mobility. By building the 300mm Smart Power Fab in Dresden we are establishing the prerequisites necessary to successfully meet the rising demand for semiconductor solutions.”

The expansion of production capacities at the existing Dresden site will enable Infineon to complete the project quickly and generate significant effects of scale. The new plant will create approximately 1,000 highly qualified jobs and let Infineon achieve additional revenues on the order of the investment amount each year. The plant will be equipped with the latest in environmental technologies, making it one of the most environmentally friendly manufacturing facilities of its kind. Through advanced digitalization and automation, Infineon is also setting new manufacturing excellence standards in Dresden. The new plant will be closely linked with the Infineon Villach site, creating a manufacturing complex for power electronics based on highly efficient 300-millimeter technology to increase efficiency levels and supply customers faster.

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