Infineon Technologies is preparing to open a new semiconductor manufacturing site on its Dresden campus in Germany as part of Europe’s push to expand domestic chip capacity. Multiple outlets report that the project is Infineon’s largest single investment, with total spending of about €5 billion (often cited around $5.8 billion). The plant, referred to as the Smart Power Fab, is being built with support from European Union subsidies under the EU Chips Act. Coverage says the facility is expected to receive roughly €1 billion (about $1.1 billion) in EU Chips Act support.
Infineon plans to use the Dresden factory to produce power semiconductors. Sources describe these components as serving markets tied to power management needs, including AI data centers, electric vehicles, and renewable energy systems. Articles also indicate that production capacity will be scaled over time based on demand rather than immediately reaching full output. The opening is scheduled for 2 July. The reporting frames the project as a step toward strengthening EU semiconductor sovereignty while aligning production with growing demand for power chips used in AI infrastructure.
