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• Investment of 5 billion euros strengthens manufacturing base for highly modern power semiconductors, creating 1,000 jobs in the "Smart Power Fab";
• Infineon chips enable energy-efficient solutions for automotive and industrial applications such as power supplies for AI data centers, renewable energy sources, power grids and software-defined vehicles;
• Capacity ramp-up at double speed possible to leverage market opportunities effectively and flexibly.
The new plant, with an investment volume of five billion euros, is the largest single investment in Infineon's history and one of the largest investment projects in Germany, creating 1,000 new, direct jobs. The new fab doubles Infineon's manufacturing capacities at the Dresden site, thus creating the world's largest factory for intelligent power semiconductors and analog / mixed-signal technologies.
"We're opening our new plant at just the right time," says Jochen Hanebeck, CEO of Infineon Technologies AG. "Our Smart Power Fab is creating urgently needed capacities for the key technologies of the future, for everything from energy supply for AI data centers to software-defined vehicles and renewable energies. Infineon is thus giving an important impulse in making the global AI revolution possible and securing supply chains in critical industries. By taking this step, we are strengthening our global vanguard position as a leading manufacturer of power semiconductors and analog / mixed-signal technologies."
"Infineon’s new Smart Power Fab sends out a powerful message about Germany and Europe as a center of industry," says German Federal Chancellor Friedrich Merz. "This investment shows that competitive, cutting-edge semiconductor production in our country is possible. 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. The expansion of Infineon’s production capacity in Dresden also strengthens our technological sovereignty and the resilience of important supply chains in Europe."
Dr. Karsten Wildberger, German Federal Minister for Digital Transformation and Government Modernization, says: “What is being produced here in Dresden secures jobs and creates value in Germany, because these cutting-edge chips are at the heart of key technologies such as electric vehicles, wind turbines, and the power infrastructure for AI data centers. The Smart Power Fab marks another milestone on Germany’s path toward digital sovereignty and demonstrates that Germany can move fast, Germany can deliver high-tech innovation, and Germany can shape the future.“
Saxony's Minister-President Michael Kretschmer says: "Microelectronics is the key technology of the 21st century, the foundation of innovation, competitive strength and economic progress. The choice of Dresden, home to Europe's largest microelectronics cluster, represents a decisive location advantage. Infineon's new Smart Power Fab makes this unique ecosystem stronger and shows that major industrial projects can be implemented securely and swiftly with the right basic prerequisites. This sends a strong signal about Dresden as an industrial location and about the future of microelectronics in Europe."
The new Smart Power Fab uses rigorous digitalization to accelerate production to twice as fast as in the past, depending on demand. For example, the building itself and the ideal machine layout were pre-planned and optimized using a digital twin. System and process clearance is supported by AI algorithms. Furthermore, the connection to the Infineon plant in Villach as "One Virtual Fab" makes qualification of processes and products significantly faster than in the past. The increased ramp-up speed lets Infineon effectively and flexibly leverage current market opportunities, including in the field of AI.
In the future, chips made in Dresden will contribute to the efficient supply of power to AI data centers, among other things. The chips are also used in other industrial and automotive applications, such as wind and solar power systems and software- defined vehicles. One example is intelligent switches that not only control loads but also monitor the flow of electricity. The interaction between power semiconductors and analog / mixed-signal components enables especially energy-efficient and intelligent system solutions, hence the "Smart Power Fab" name.
With the expansion, Infineon Dresden is further strengthening its position as a worldwide leading site for power semiconductors and analog / mixed-signal technologies; at the same time, it is also bolstering the European leadership role in the overall semiconductor cluster "Silicon Saxony" in and around Dresden. Infineon is creating a total of 1,000 new jobs in Dresden with the Smart Power Fab. In addition, the Smart Power Fab will have positive effects on the economic development of the region and on the job situation in the supplier environment and ecosystem: Studies have shown that one cleanroom job creates six additional jobs in adjacent areas. Today over 80,000 people are already employed in the "Silicon Saxony" cluster.
Infineon's Smart Power Fab is also setting new standards in sustainable manufacturing. Modern production technologies and optimized energy and resource processes help reduce energy consumption and further improve the environmental footprint of chip production. The new manufacturing system requires no natural gas and cuts water consumption with water treatment and the implementation of closed-loop water systems. Approximately 90 percent of the water used is to be reintroduced in the circulation, making it possible to recover a much as 45 percent of the energy used.
About Infineon
Infineon Technologies AG (infineon.com) is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 57,000 employees worldwide (end of September 2025) and generated revenue of about €14.7 billion in the 2025 fiscal year (ending 30 September).
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franziska.hofmeister[.]infineon.com 
