Infineon Technologies is set to bolster Europe's semiconductor industry with the construction of a new chip manufacturing facility in Dresden. Backed by a substantial 920 million euro subsidy from Germany's Federal Ministry for Economic Affairs and Climate Action, the funding is part of the broader European Chips Act initiative. The total investment for the plant is estimated at 5 billion euros, with Infineon contributing 3.5 billion euros of its own resources.
Scheduled to begin production in 2026, this new facility aims to reach full operational capacity by 2031. It is expected to generate approximately 1,000 direct jobs, significantly boosting local employment. The plant will focus on producing semiconductors catering to the automotive, industrial, and renewable energy sectors.
In return for the funding, Infineon has committed to prioritizing EU orders during crisis periods and providing manufacturing capacities for prototypes to small and medium-sized enterprises, research institutions, and universities. This strategic move aligns with the EU's goal to increase its share of global semiconductor manufacturing to 20% by 2030.
The European Commission has greenlit this state aid, viewing it as a crucial step towards enhancing the continent's semiconductor production capabilities. As construction progresses, the Dresden facility represents a pivotal development in strengthening Europe's technological sovereignty and innovation landscape.
