Infineon launches €5 billion Dresden semiconductor plant to boost EU chip independence

German semiconductor maker Infineon has inaugurated a new 300 mm smart‑power fab in Dresden, a €5 billion investment that it says is the largest wafer plant in Europe. The facility, located about 100 km from the Polish border, will mass‑produce microcontrollers and power chips for automotive, energy‑transition and artificial‑intelligence applications, aiming to lessen Europe’s reliance on US and Asian suppliers.

The project received roughly €1 billion in EU “Chip Act” subsidies and additional German government support. Infineon expects the fab to create around 1,000 direct jobs and to generate up to €5 billion of annual revenue once fully operational. The plant incorporates renewable‑energy power, a closed‑loop water‑recycling system and digital‑twin manufacturing, underscoring a green‑technology focus. German Chancellor Olaf Scholz and other officials attended the opening, highlighting the plant’s role in the EU’s goal of reaching a 20% global chip‑production share by 2030.