Infineon Technologies AG has received approval to begin final construction phase on its Smart Power Fab in Dresden, Germany.
Infineon broke ground on the plant in May of 2023 with manufacturing slated to begin in 2026. Infineon will invest a total of about $5.4 billion in the facility. The company said it plans to receive funding in accordance with the objectives of the European Chips Act to the tune of about $1 billion.
The company said the Smart Power Fab will contribute to the European Union’s goal to reach 20% of global semiconductor production by 2030. The Dresden fab will manufacture semiconductors used in automotive and renewable energy industries such as power chips and analog/mixed-signal components.
"Infineon's fourth production module in Dresden is another important building block in strengthening Europe's resilience in the field of microelectronics,” said Michael Kretschmer, prime minister of the Free State of Saxony. “It is a further step towards achieving the European Commission's goal of increasing Europe's share of global chip production to 20 percent.”
The Smart Power Fab will create about 1,000 jobs in the Saxon state and support about 1,200 construction workers that will be working the site in multiple shifts.