Infineon plans $5.1 bn chipset factory in German city of Dresden

Chipmaker Infineon is planning a factory with an investment of €5 billion or $5.16 billion in the eastern German city of Dresden to expand its 300-millimetre production capacities.
Infineon chipset
The chipset manufacturing plant, subject to adequate public funding, could go into operation in autumn 2026 and create up to 1,000 jobs, Infineon said. The planned factory would have the potential to generate annual revenue equal to the level of the investment.

Infineon raised its future target operating model and now expects its average rate of revenue growth to be more than 10 percent, up from a previous 9 percent.

The German chipmaker saw growth driven in particular by electromobility, autonomous driving, renewable energies, data centres and the internet of things.

The segment result margin is also expected to reach an average level of 25 percent versus 19 percent to date.

Meanwhile, global carmaker Stellantis has signed a non-binding memorandum of understanding (MoU) with Infineon for a multi-year supply of silicon carbide semiconductors, Infineon said in a statement on Monday.

Infineon will reserve production capacity and supply the power semiconductors directly to Stellantis suppliers in the second half of the 2020s.

Well over 1 billion euros’ ($1.03 billion) worth of chips could be involved. Chips would be meant for electric vehicles under the Stellantis brands, Infineon said.