Infineon begins construction of new plant in Dresden

Yusin Hu, DIGITIMES Asia, Taipei 0

Rendering of Infineon's new Dresden fab that is slated to complete in 2026 Credit: Infineon

Infineon announced on Feb 16 that it has received approval from the German government to start construction of its new fab in Dresden, Germany. In addition to grants from the European Chips Act, the company is seeking public funding for the new plant.

Infineon plans to invest a total of approximately EUR5 billion (US$5.35 billion) in the new Dresden plant, which is expected to start producing analog/mixed-signal chips and power semiconductors in Fall 2026.

According to the company, the new plant will receive funding from the European Commission in accordance with the objectives of the European Chips Act. In addition to that, Infineon said it is seeking public funding of around EUR1 billion. The total investment will reach around EUR5 billion, making it the largest investment in company history.

Through the European Chips Act, the European Commission has declared its objective for EU to reach a 20% share in global semiconductor production by 2030. Infineon's new Dresden fab will help EU to achieve that goal, keeping critical industrial value chains at home.

Analog/mixed-signal components are used in power supply systems in charging systems, small automotive motor control units, as well as in data centers and in Internet of Things (IoT) devices.

Infineon is currently building another new fab worth of EUR2 billion in Kulim, Malaysia that will expand the company's production capacity of SiC and GaN semiconductors. The two types of compound semiconductors are commonly implemented in wind turbines, solar power systems, EVs, and charging infrastructures for higher energy efficiency.

The company said on Feb 16 that the new Kulum plant, known as Kulim 3, will be ready for equipment in summer 2024

Infineon CEO Jochen Hanebeck said in a press release, "We see structurally growing demand for semiconductors in renewable energies, data centers and electro-mobility. By building the 300mm Smart Power Fab in Dresden we are establishing the prerequisites necessary to successfully meet the rising demand for semiconductor solutions."