Infineon Technologies AG has officially inaugurated its new Smart Power Fab in Dresden, marking the largest single investment in the company’s history at five billion euros. The facility, which opened several months ahead of its original schedule, is designed to double the site's production capacity for power semiconductors and analog/mixed-signal technologies.
Powering the Future of Mobility and AI
The semiconductors manufactured at the Dresden plant are critical components for the next generation of technology. Key applications include battery-electric vehicles (BEVs), software-defined vehicles, and the power supply systems required for AI data centers. Additionally, the chips will support renewable energy infrastructure, such as wind and solar power systems.
Digital Innovation and Efficiency
The factory was developed using advanced digital methods, including digital twins for planning and AI algorithms to streamline manufacturing approvals. As part of a "One Virtual Fab" concept, the Dresden site is networked with Infineon’s facility in Villach, Austria, allowing for faster product qualification and a ramp-up process that is twice as fast as traditional methods.
Sustainability was also a core focus in the plant's design. The facility operates entirely without natural gas for chip production, recycles approximately 90% of its process water, and recovers up to 45% of its energy consumption.
Strategic Sovereignty
Supported by the European Chips Act, the project received approximately €920 million in state aid approved by the EU Commission. The facility utilizes a flexible 300-millimeter production line, enabling the manufacture of diverse semiconductor technologies on the same equipment. This expansion is a significant step in reducing Europe’s dependence on non-European semiconductor production sites.



