Infineon Technologies AG has opened its Smart Power Fab in Dresden, Germany, in what is called one of the largest investment projects in the country and in Infineon’s history.
The €5 billion investment will double Infineon’s manufacturing capabilities at the Dresden site and is claimed to be the world’s largest factory for intelligent power semiconductors and analog/mixed-signal chips. The fab will create 1,000 new direct jobs in Dresden.
The fab will manufacture technologies that will be used in AI, secure supply chains and more.
“By taking this step, we are strengthening our global vanguard position as a leading manufacturer of power semiconductors and analog/mixed-signal technologies,” said Jochen Hanebeck, CEO of Infineon Technologies AG.
According to German Federal Chancellor Friedrich Merz, the investment is critical for German semiconductor production and making the country the heart of the industry in Europe.
“Power semiconductors are a key technology for the energy transition, the future of mobility and our AI infrastructure — meaning they are crucial to make our economy fit for the future,” Merz said. “The expansion of Infineon’s production capacity in Dresden also strengthens our technological sovereignty and the resilience of important supply chains in Europe."
Accelerating production
Infineon said the Smart Power Fab will use digitization to accelerate production to twice as fast as in the past, depending on demand.
Infineon gave an example of the building itself, and machine layouts were pre-planned and optimized using a digital twin and supported via AI algorithms. The speed lets Infineon ramp up production when the demand for chips are high, like in the case of AI.
Some of the use cases for power and logic chips include:
- Industrial
- Automotive
- Data centers
- Wind and solar power systems
- Software-defined vehicles
- Intelligent switches
Infineon said that in addition to the 1,000 jobs the fab will create, it will have economic development throughout the region and create a supplier environment and ecosystem. Infineon pointed to a study that showed on cleanroom jobs create six additional jobs in the area.
