Infineon launches €5 bn Dresden chip plant, doubling capacity

Infineon Technologies will commission its new semiconductor fab, called Module 4, in the Dresden region on 2 July, three months ahead of the original schedule. The €5 billion investment will double the site’s production capacity for power‑semiconductor chips used in electric vehicles, wind‑turbine inverters and AI data‑center power supplies, and will create roughly 1 000 jobs.

The plant, built on a site near the existing Silicon Saxony cluster, occupies a 40‑metre‑high, 22‑metre‑deep building with a clean‑room area the size of three football fields. Production runs under yellow‑light illumination to protect sensitive photo‑resists, and strict contamination limits allow no more than a 0.5‑micrometre dust particle per ten litres of air. The factory will be powered entirely by renewable electricity, recycles about 45 % of its water use and returns 90 % of the water to the system.

Public funds contributed close to €1 billion, and Saxony’s Minister‑President Michael Kretschner visited the site during construction. Infineon’s production board member Alexander Gorski highlighted the surge in demand from AI‑driven hyperscale data centres and said the new capacity strengthens Europe’s position in the global semiconductor market, where one‑third of chips produced in Europe now come from Dresden.