Infineon launches €5 billion Smart Power semiconductor fab in Dresden

Infineon Technologies has brought its Smart Power Fab in Dresden into operation several months ahead of schedule. The €5 billion investment creates about 1,000 direct jobs and doubles the company's semiconductor capacity at the site, making it the world’s largest manufacturing facility for power and analog/mixed‑signal chips.

The new fab will produce power semiconductors that improve electricity management in AI data centers, renewable‑energy installations and software‑defined vehicles. Production is supported by a digital twin and AI‑driven manufacturing tools that accelerate ramp‑up and reduce delays. Sustainability is a core design goal: the plant operates without natural gas, recycles roughly 90 % of its process water and recovers up to 45 % of manufacturing energy. German Chancellor Friedrich Merz highlighted the project as a strong signal for Europe’s semiconductor sector and its role in the energy transition.