Infineon Receives Permit for Final Phase of €5bn Dresden Smart Power Fab

Infineon Technologies has reached a significant milestone in its plans to establish a €5 billion smart power fab in Dresden, Germany. The company has recently obtained the final construction permit, paving the way for production to commence in 2026. This state-of-the-art facility is expected to enhance supply chain security in Europe, a crucial step in the region's efforts to strengthen its microelectronics industry.

During a special visit, the Prime Minister of the Free State of Saxony, Michael Kretschmer, officially handed over the last outstanding building permit for the new fab, which was issued by the State Directorate of Saxony. The completion of the excavation of the building pit marks a significant progress in the project. Currently, the shell and building construction are underway, with a concrete foundation up to two meters thick.

Infineon initiated the construction of the new plant in Dresden in May last year and is seeking €1 billion in support from the EU Chips Act. Despite recent announcements of significant cuts, the company remains committed to the project, emphasizing its strategic importance for the region and the broader European semiconductor industry.

"The construction of the Smart Power Fab is a major achievement for Dresden, Saxony, Germany, and Europe," stated Prime Minister Michael Kretschmer. "Infineon's investment in this new production module represents a crucial step in enhancing Europe's resilience in microelectronics and aligns with the European Commission's goal of increasing the region's global chip production share to 20 percent."

Dr. Rutger Wijburg, Member of the Management Board and Chief Operations Officer of Infineon, expressed optimism about the progress of the Smart Power Fab construction, highlighting the company's collaboration with authorities. "Our decision to continue investing in Dresden underscores our commitment to securing the long-term future of the site and bolstering semiconductor manufacturing in Europe," Dr. Wijburg added.

As construction advances, Infineon has been actively involved in the site preparation, with approximately 8,000 tons of soil being removed daily. A significant amount of excavated soil, totaling 450,000 cubic meters, is being stored near the Dresden Airport freeway junction. The next phase will involve the construction of basement levels and the clean room, which is planned for the fourth level.

The project will see the deployment of ten tower cranes, some reaching heights of 80 meters, to support the workforce of up to 1,200 construction workers operating in multiple shifts. With these developments, Infineon's commitment to expanding its manufacturing capabilities and contributing to the growth of the semiconductor industry in Europe is evident.