Infineon Technologies has opened its new €5 billion Smart Power Fab in Dresden, creating 1,000 jobs. This facility doubles production capacity for power semiconductors and analogue/mixed-signal technologies, crucial for electric vehicles, renewable energy, and AI data centers.
The highly efficient plant employs digital planning, AI, and is networked for rapid production ramp-up. It operates gas-independently, recycles 90% water, and recovers 45% energy. As a key project under the European Chips Act, it received €920 million in state aid, aiming to bolster Europe’s semiconductor manufacturing independence and reduce reliance on non-European sites.
Infineon Technologies AG has opened its new Smart Power Fab in Dresden several months ahead of schedule. According to the company, the facility doubles the production capacity for power semiconductors and analogue/mixed-signal technologies at the site. Infineon has invested five billion euros in the project and created around 1,000 new jobs. The semiconductors produced in Dresden will be used for applications such as battery-electric vehicles, software-defined vehicles, wind and solar power systems, and the power supply for AI data centres. Power semiconductors play a central role in converting and controlling electrical energy and are considered key components for numerous applications in the energy transition as well as electromobility.
“We’re opening our new plant at just the right time. Our Smart Power Fab is creating urgently needed capacities for the key technologies of the future, for everything from energy supply for AI data centers to software-defined vehicles and renewable energies,” says Infineon CEO Jochen Hanebeck.
The factory was largely planned and constructed using digital methods. Digital twins were used during the planning phase, while AI algorithms support the approval of equipment and manufacturing processes. Additionally, the facility is networked with Infineon’s site in Villach, Austria, as part of a so-called ‘One Virtual Fab’. This enables faster cross-site qualification of new products and manufacturing processes. Infineon states that, depending on demand, production ramp-up can be achieved roughly twice as fast as before.
The facility is designed to operate with exceptional efficiency, with chip production entirely independent of natural gas. Furthermore, around 90 per cent of the water used is recycled back into the production cycle, and up to 45 per cent of the energy consumed is recovered.
The Smart Power Fab is also part of the European semiconductor strategy. In early 2025, the EU Commission approved state aid from the German government of up to €920 million euros for the Dresden facility. Against this backdrop, the project is one of the initiatives under the European Chips Act, which aims to expand Europe’s semiconductor manufacturing capacity and reduce dependence on non-European production sites.
At the time of approval, Infineon announced plans to establish a flexible 300-millimetre production line in Dresden. This allows different semiconductor technologies to be produced on the same equipment without extensive retooling. Power semiconductors from Dresden will be used primarily in electromobility applications, charging infrastructure, renewable energy systems, and industrial applications.
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