German semiconductor company Infineon has opened the world’s largest power semiconductor manufacturing plant, hoping to reduce Europe’s reliance on imported chips.
The semiconductors produced by the Dresden facility could be deployed across a range of sectors, including AI-powered data centres, electric and autonomous vehicles, renewable energy systems and more.
“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.”
The Dresden plant was delivered ahead of schedule
The world’s largest power semiconductor manufacturing plant represents the largest single investment in Infineon’s history at €5 billion. The construction was also allocated nearly €920 million in public funding under the European Chips Act.
Construction began in 2023 and finished ahead of schedule. Upon reaching full capacity, the plant is expected to employ around 1,000 specialists. The plant will also double Infineon’s production capacity in Dresden.
Microelectrics are a priority for German industry
According to the federal government, one out of every three microchips in Europe is produced in Germany’s Silicon Saxony region. The new Infineon plant is expected to bolster the region’s profile as a European hub of semiconductor chips, reducing the need to rely on importing from East Asia.
Demand is growing worldwide for power semiconductors and the German government has made clear it’s intentions to capitalise, with a national strategy and Hightech Agenda Deutschland program being rolled out to support research, training specialists and construction of new production facilities.
“Infineon’s new Smart Power Fab sends out a powerful message about Germany and Europe as a center of industry,” said 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.”
