With a total investment of €5 billion, the project aims to boost microelectronics innovation, create jobs, and drive decarbonization and digitalization.
The European Commission has officially approved funding under the European Chips Act for Infineon Technologies AG’s Smart Power Fab in Dresden. The Federal Ministry for Economic Affairs and Climate Action (BMWK), responsible for disbursing the funds, is expected to confirm the approval in the coming months. Additionally, the Smart Power Fab benefits from the European Commission’s IPCEI ME/CT program, supporting innovation in microelectronics and communication technologies. The total funding for the site amounts to approximately €1 billion.
Construction of the Smart Power Fab began in March 2023 and is progressing as planned, with an opening scheduled for 2026. “This government-supported investment strengthens Dresden, Germany, and Europe as a semiconductor hub and fosters an advanced innovation and production ecosystem for microelectronics,” said Infineon CEO Jochen Hanebeck. “We are expanding semiconductor capacity in Europe, ensuring stable supply chains for automotive, security, and industrial applications.”
The company is investing €5 billion in expanding its Dresden facility, creating up to 1,000 direct jobs and additional employment within the broader ecosystem. Experts estimate a 1:6 job creation effect, amplifying economic impact. The Smart Power Fab will focus on cutting-edge technologies that support decarbonization and digitalization, particularly in energy-efficient power solutions for Artificial Intelligence.
Beyond Dresden, the company is leveraging the IPCEI ME/CT program to boost R&D investments across Germany and Austria. Between 2022 and 2027, the company will invest €2.3 billion in power electronics, analog/mixed-signal technologies, sensor innovations, and radio frequency applications.
In alignment with EU funding programs, the company is fostering partnerships between science and industry. Collaborations with universities, research institutions, and startups will drive sustainable innovation, strengthening Europe’s position as a global leader in microelectronics.
