Infineon launches €5 billion Smart Power Fab chip factory in Dresden

German semiconductor giant Infineon has opened its new "Smart Power Fab" in Dresden, a €5 billion investment that is the largest single‑site spend in the company’s history. The plant, built in record time and commissioned three months ahead of schedule, will double the site’s output of power semiconductors used in electric vehicles, renewable‑energy converters, data‑center equipment and industrial applications. It operates on 300‑millimetre wafers, is powered entirely by renewable electricity and uses industrial water for cooling.

Around 1 000 jobs are being added, bringing the local workforce to roughly 4 250. About €1 billion of the funding comes from public sources under the European Chips Act and German innovation programmes. The inauguration was attended by Infineon CEO Jochen Hanebeck, Saxony’s Minister‑President Michael Kretschmer and other officials. Analysts commented on the opening, with some rating the stock a clear buy and others taking a more neutral stance ahead of the company's quarterly results.

The facility is presented as a cornerstone of Europe’s push for technological sovereignty in the semiconductor sector, aiming to reduce reliance on overseas suppliers and to strengthen the region’s industrial base.