Infineon opens new €5bn Smart Power Fab chip factory in Germany

The Dresden plant is the largest investment in Infineon’s history, one of the largest investment projects in Germany and is opening several months ahead of schedule, according to the company.
Global semiconductor company Infineon Technologies has opened its new €5bn chip factory in Dresden, Germany as the company says it will create 1,000 new direct jobs.
The company said the Smart Power Fab is the world’s largest facility for smart power semiconductors and analog and mixed-signal technology, and will double its production capacity at its existing Dresden site.
The facility is the largest investment in Infineon’s history, one of the largest investment projects in Germany and is coming online several months ahead of schedule, according to the company.
“We are opening our new factory at the right time,” said Jochen Hanebeck, CEO of Infineon. “Our Smart Power Fab is creating urgently needed capabilities for the key technologies of the future, in everything from powering AI data centers to software-defined vehicles and renewable energy.”
The new facility is designed to be fast and efficient in the production of “highly advanced power semiconductors” for use in “energy saving solutions for automotive and industrial applications”, the company said.
It will achieve this through “strong digitalisation” with AI algorithmic support for system and process outsourcing, while a ‘digital twin’ is used to help plan and optimize the facility, according to the company.
Infineon said the interaction between power semiconductors and analog and mixed signal components produced in the Smart Power Fab can create “particularly energy-efficient and intelligent system solutions” for use in applications such as wind and solar power systems.
The plant is also designed for sustainable production, according to Infineon, with modern technology and advanced processes that do not use natural gas and include closed water systems to reduce waste and recover up to 45pc of energy used during production.
“Infineon’s new Smart Power Fab sends a strong message about Germany and Europe as an industrial hub,” said German chancellor Friedrich Merz.
“The expansion of Infineon’s production capacity in Dresden further strengthens our technological dominance and the strength of our value chains in Europe.”
Infineon, which in the last financial year had almost 57,000 employees worldwide and revenues of approximately €14.7bn, received direct funding from the European Commission amounting to €920m for the investment in Dresden.
EU support for Infineon is part of a strong effort aimed at honing the bloc’s manufacturing capabilities and improving the industry’s resilience to external pressures.
Earlier this year, Infineon opened a new R&D center based in Cork focusing on its innovations in the automotive and consumer microelectronics areas, in areas such as battery management, vehicle control and touch screens.
Last year, Brenda Barrett, global head of customer asset management and managing director of Infineon Ireland, with sites in Dublin and Cork, spoke to SiliconRepublic.com on The Leaders’ Room podcast.
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