Infineon Breaks Ground for Significant Dresden Facility Expansion
The momentum in developing manufacturing capacity for the latest semiconductors in Europe is growing, with new facilities being planned or already under construction. One of these major projects is happening in the German state of Saxony, at Infineon Technologies’ Dresden semiconductor manufacturing facility. The company recently broke ground for a new 300-mm technology plant addition to make mixed-signal and power semiconductors.
This action is part of the ambitious EU Chips Act, as EU Commission President Ursula von der Leyen pointed out,“That is why one focus of our European Chips Act is on increasing domestic production. For the European Chips Act, we—the EU and the Member States—are spending up to EUR 43 billion. By 2030, we want, together with industry, to double Europe's share of global chip production to 20%. Because the chips market is also growing rapidly, however, that means that we need to quadruple our current capacity.”
The groundbreaking in Dresden was well attended by political and business leaders, including EU Commission President Ursula von der Leyen, German Federal Chancellor Olaf Scholz, Saxony's Prime Minister Michael Kretschmer, and Dresden's Mayor Dirk Hilbert. The VIPs symbolically launched construction work along with Infineon CEO Jochen Hanebeck.
The largest single investment in Infineon's history, five billion euros, will strengthen the company’s manufacturing base for advanced mixed-signal semiconductors, while driving decarbonization and digitalization. The facility will focus on the interaction of power semiconductors and analog/mixed-signal components, making it possible to create energy-efficient and intelligent system solutions.
Expansion of production capacities at the existing Dresden site will let Infineon complete the project quickly and generate considerable effects of scale. Manufacturing activities are planned to begin in Fall 2026. The expansion will create approximately 1,000 highly qualified jobs. Preparatory measures are currently taking place at the site of the new plant; the start of shell construction is planned for Fall 2023.
Equipped with the latest in environmental technologies, the plant will be among the most environmentally friendly manufacturing facilities of its kind, leveraging advanced digitalization and automation. The new plant will be closely linked with the Infineon Villach site as “One Virtual Fab.” Subject to the European Commission's state aid decision and the national grant procedure, the project is to be funded in accordance with the objectives of the European Chips Act. The company is seeking public funding of around one billion euros.
