EU funding approved for Infineon Dresden smart power fab

The European Commission has given the green light to nearly €1 billion in funding for the Smart Power Fab project by Infineon Technology in Dresden, Germany. This funding falls under the European Chips Act, a significant boost for the semiconductor industry in Europe.

The approval for a direct grant of up to €920 million from the Federal Ministry for Economic Affairs and Climate Action is still pending but is anticipated to be finalized in the coming months. This financial support is crucial for the development and expansion of the Smart Power Fab, which is set to play a key role in enhancing semiconductor production capabilities in the region.

The Smart Power Fab, a 300mm facility, is already benefiting from the European Commission's IPCEI ME/CT program, which focuses on fostering innovation in microelectronics and communication technologies. Construction of the Fab commenced in March 2023 and is on track for completion, with operations expected to commence in 2026 and reach full capacity by 2031.

"This government-backed investment by Infineon will not only bolster Dresden's position as a semiconductor hub but also contribute to the advancement of cutting-edge innovation and production ecosystem for microelectronics in Europe," stated Jochen Hanebeck, CEO of Infineon. "By expanding semiconductor capacity in Europe, we aim to ensure stable supply chains for critical sectors such as automotive, security, and industrial applications."

Infineon's total investment in the Dresden site amounts to €5 billion, with the German federal government having previously granted approval for the project's early commencement. Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition at the Commission, emphasized the significance of the €920 million German measure in supporting the establishment of a state-of-the-art megafab in Dresden. This initiative is poised to fortify Europe's digital economy and guarantee a reliable semiconductor supply for various industries while upholding fair competition practices.