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German Government Issues Final Funding Approval For New Infineon Fab In Dresden
May 8, 2025 | InfineonEstimated reading time: 1 minute
Infineon Technologies AG has received final approval for the funding of its new plant in Dresden (Smart Power Fab) from the German Federal Ministry for Economic Affairs. Infineon is expanding the site in order to meet customer demand for example for renewable energies, efficient data centers and electromobility. Infineon will invest five billion euros of its own money, creating as many as 1,000 new jobs. This figure does not include additional jobs which will be generated in the investment's ecosystem: Experts expect a positive job effect of 1:6 (Source: ZVEI-Studie). In addition, Infineon is also investing in Dresden through its participation in the joint venture "European Semiconductor Manufacturing Company (ESMC) GmbH".
"The final funding approval for our Smart Power Fab is an important milestone for us as a company and is a clear signal to the European semiconductor ecosystem," says Infineon CEO Jochen Hanebeck. "We are grateful to the German federal government, the Free State of Saxony and to the European Union for their support. The semiconductors we manufacture in Dresden are our contribution to making the future value chains of key European industries even more robust."
Infineon's Smart Power Fab not only helps strengthen European supply chains in the microelectronics sector, it also further solidifies the position of Dresden and Silicon Saxony as Europe's largest semiconductor hub. The European Commission approved the funding by the German federal government on 20 February. The Smart Power Fab is being supported by both the European Chips Act and the IPCEI ME/CT innovation program ("Important Project of Common European Interest on Microelectronics and Communication Technologies"). Overall funding for the site from these sources totals approximately one billion euros.
Construction of the Smart Power Fab, currently one of Germany's largest building projects, is proceeding as planned, with the building shell currently nearing completion. Infineon held a topping-out ceremony together with all those involved in construction activities in early April this year. Already in May 2023, Infineon celebrated the official groundbreaking, after the German federal government granted permission for an early project launch. Production is to begin in 2026.
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