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Infineon Opens €5 Billion Smart Power Fab in Dresden

Backed by roughly €920 million in EU funds, the 300‑mm plant will supply power semiconductors for electric vehicles, renewables and AI data centers while strengthening Europe’s chip capacity.

Overview

  • Infineon formally opened the Smart Power Fab in Dresden on Thursday, July 2, marking the company’s largest single investment of about €5 billion and a build completed three months ahead of schedule.
  • The facility will produce power semiconductors on 300‑mm wafers for EVs, wind and solar inverters and data‑center power systems, will run on 100% green electricity and is expected to create roughly 1,000 direct skilled jobs.
  • Public support tied to the project totals about €920 million under the European Chips Act, a funding decision the EU approved in February 2025 and which officials cite as key to boosting European production capacity.
  • Separately, Siemens announced a €300 million expansion in Hesse for electrical switchgear, planning about 700 new jobs by 2030 to meet rising demand from data centers and electrification projects.
  • The openings underscore a broader push for industrial scale‑up in Europe: policymakers promise faster approvals and greater sovereignty over critical supply chains, while analysts question the size of subsidies and call for lasting research and workforce ties to lock in investment.