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Infineon Opens €5bn Smart Power Fab in Dresden Ahead of Schedule

Europe gains new power‑chip capacity supported by €1 billion from the EU Chips Act, with digital‑twin planning and AI tools to speed production.

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The plant is located in the heart of Germany's 'Silicon Saxony' region, one of Europe's most dynamic clusters for the microchip industry
An employee holds a 300mm wafer at the new Smart Power Fab of German semiconductor manufacturer Infineon Technologies AG in Dresden
German Chancellor Friedrich Merz gives the thumbs up as he addresses the opening ceremony via video link

Overview

  • Infineon officially opened the Smart Power Fab in Dresden on Thursday, July 2, 2026, completing its largest-ever €5 billion investment and starting a rapid capacity ramp-up.
  • The new facility doubles Infineon’s Dresden output and is described by the company as the world’s largest factory for power semiconductors and analog/mixed-signal technologies.
  • The fab will run 24 hours a day in three shifts, create about 1,000 direct jobs, and produce chips for software-defined vehicles, AI data-centre power supplies, and renewable-energy systems.
  • The project received €1 billion under the EU Chips Act and links to Infineon’s Villach plant as a 'One Virtual Fab', using a digital twin and AI for layout, approvals, and faster product qualification.
  • While the plant strengthens Europe’s chip-making capacity and local employment in Silicon Saxony, experts warn the sector still depends on steep economies of scale to reach profitability and faces wider market volatility.