EU Grants €920 Million for Infineon's Dresden Plant Expansion

According to reports, the European Commission has officially approved a subsidy plan of up to €920 million under the European Chips Act to support the expansion of Infineon's semiconductor manufacturing facility in Dresden, Germany. This move is expected to enhance Europe's supply security, resilience, and technological autonomy in the semiconductor sector. Additionally, the European Commission has approved funding for an associated smart power plant that will support the Dresden facility.

As part of the plan, Infineon will invest €5 billion to expand its Dresden plant, with the German federal government already granting early approval for the project. Construction began in March 2023 and is progressing successfully, with the plant slated to open in 2026. The new development is expected to create up to 1,000 new jobs, excluding additional positions created within the investment ecosystem. Experts predict a positive work effect ratio of 1:6.

While the official funding approval from Germany's Federal Ministry for Economic Affairs and Climate Action (BMWK) is still pending, it is expected to be finalized in the coming months.

The associated smart power plant will focus on accelerating decarbonization and digitalization technologies, such as energy-saving solutions powered by artificial intelligence. The smart power plant has already secured support from the EU Commission's IPCEI ME/CT (Important Projects of Common European Interest in Microelectronics and Communication Technologies) innovation program.

Jochen Hanebeck, CEO of Infineon, commented: "This government-supported investment strengthens Dresden, Germany, and Europe as a semiconductor hub, fostering cutting-edge microelectronics innovation and manufacturing ecosystems. We are increasing Europe's semiconductor capacity to help ensure stable supply chains in the automotive, security, and industrial sectors."

In addition to the Dresden expansion, Infineon is leveraging the IPCEI ME/CT program to promote R&D investments at other company locations. Between 2022 and 2027, Infineon plans to invest €2.3 billion in innovation projects at its sites in Germany and Austria, focusing on power electronics, analog/mixed-signal technology, sensor technologies, and RF applications.

As part of the EU funding program, Infineon is also planning comprehensive measures to foster collaboration between science and industry. A key element will be close cooperation with European universities, research institutions, and startups. Infineon is providing talented young people with platforms to develop and advance sustainable innovations. These efforts bridge scientific knowledge with practical application, further strengthening Europe's position as an innovation leader.