Investing 5 billion euros, Infineon plans to build a new 12-inch fab in Germany

According to media reports, Infineon has approved a plan to build a new 300mm wafer manufacturing plant in Dresden, Germany. The project will focus on analog/mixed-signal and power semiconductor products, with a planned investment of up to 5 billion euros. The new factory is expected to create as many as 1,000 jobs and could be up and running by the fall of 2026.

However, Infineon emphasized in a press release that whether the plan can be finally implemented "depends on whether there is sufficient public funding", such as the support of subsidies in the European Chip Act.

Jochen Hanebeck, who recently took over as CEO of Infineon, said: "We are delighted that the investment in the Dresden plant (Germany) has received government support and we expect sufficient funding through the European Chip Act. Strong Q4 performance in challenging FY2022. FY2023 is also off to a good start. Vigilance will be required in the coming quarters given ongoing macroeconomic and geopolitical uncertainties. We are prepared to act swiftly and flexibly if necessary. "

Infineon also revealed that the company’s capital expenditure budget for fiscal year 2023 is 3 billion euros, which will focus on expanding the third plant in Kulim, Malaysia, to increase compound semiconductor production capacity.