Infineon starts building €5 bn semiconductor plant in Dresden

Infineon Technologies has broken ground for building a new semiconductor plant in Dresden with an investment volume of €5 billion.
Infineon Connected Secure Systems“Semiconductor demand will grow strongly and persistently in view of the high demand for renewable energies, data centers and electromobility. Our new plant will serve our customers’ demands in the second half of the decade,” Infineon CEO Jochen Hanebeck said.

Expansion of production capacities at the existing Dresden site will let Infineon complete the project quickly and will generate considerable effects of scale. Manufacturing activities are planned to begin in fall 2026. The expansion will create approximately 1,000 jobs. The start of shell construction is planned for fall 2023.

This manufacturing complex for power electronics is based on 300-millimeter technology and will increase efficiency levels.
Infineon Technologies new plant in DresdenSubject to the European Commission’s state aid decision and the national grant procedure, the project is to be funded in accordance with the objectives of the European Chips Act. Infineon is seeking public funding of around one billion euros.

Infineon earlier said it expects revenues of around €15.5 billion, with a gross margin of around 45 percent and a Segment Result Margin of around 25 percent. Investments are expected to amount to approximately €3 billion in 2023.

Infineon said its investment in a new semiconductor facility is an essential contribution to achieving the European Commission’s objective of reaching a 20 percent share of global semiconductor production in the EU by 2030.