Infineon breaks ground on 5 billion-euro semiconductor plant in Germany

Global semiconductor company Infineon Technologies AG has broken ground for a new chip manufacturing plant in Dresden, Germany.

EU Commission President Ursula von der Leyen, German Federal Chancellor Olaf Scholz, Saxony's Prime Minister Michael Kretschmer and Dresden's Mayor Dirk Hilbert symbolically launched construction work together with Infineon CEO Jochen Hanebeck yesterday. With an investment volume of five billion euros, the new plant is the largest single investment in Infineon's history.

"With this groundbreaking, Infineon is launching an important contribution to the green and digital transformation of our society," said Hanebeck. "Global semiconductor demand will grow strongly and persistently in view of the high demand for renewable energies, data centres and electromobility. Our new plant will serve our customers' demands in the second half of the decade. Together, we are driving decarbonisation and digitalisation."

“In times of increasing geopolitical risks, it is great news for Europe that Infineon is investing massively in semiconductor manufacturing in Dresden”, said von der Leyen. “We need more such projects in Europe as demand for microchips will continue to rise rapidly. The EU Commission and member states are mobilising 43 billion euros over the next few years under the European Chips Act to create a stronger and more resilient Europe in the digital domain."

"Chips are the basis of any essential transformation technology – from wind farm to charging stations. We welcome Infineon's continued investment in Germany and thus further strengthening our country as one of the world's most important semiconductor locations," Scholz emphasized on the occasion of the ground-breaking event. "Chips made in Dresden help secure jobs and make our industry – from midsize companies to large corporations – more resilient. Dresden is where the components are created, that are needed for upcoming investments in green technologies."

The investment in the new plant by Infineon strengthens the manufacturing basis for the semiconductors that drive decarbonisation and digitalisation. Analog/mixed-signal components are used in power supply systems, for example in energy-efficient charging systems, small automotive motor control units, in data centres and in applications for the Internet of Things (IoT). The interaction of power semiconductors and analog/mixed-signal components makes it possible to create particularly energy-efficient and intelligent system solutions.

Expansion of production capacities at the existing Dresden site will let Infineon complete the project quickly and will also 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 end-2023.

The plant will be equipped with the latest in environmental technologies and will be among the most environmentally friendly manufacturing facilities of its kind. The new plant will be closely linked with the Infineon Villach site as ‘One Virtual Fab’. This manufacturing complex for power electronics is based on highly efficient 300-millimetre technology and will increase efficiency levels, giving Infineon additional flexibility in order to supply its customers faster.

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