The new factory will be closely connected with Infineon’s Villach factory, which the company is renovating to produce SiC and GaN power chips on its previous 200mm and 150mm silicon lines.
The German Federal Ministry for Economic Affairs and Climate Action (BMWK) has approved the early start of the project, which means that the construction can start before the European Commission completes the inspection of legal subsidies.
According to the European Commission’s national aid decision and national funding procedures, the project will be funded according to the objectives of the European Chip Law. Infineon is seeking about 1 billion euros of public funds. The company plans to invest about 5 billion euros in the factory (above), which will start production in 2026. This constitutes the largest single investment in the company’s history.
Jochen Hanebeck, CEO of Infineon, said: "We are accelerating our pace and expanding our production capacity to take advantage of the growth opportunities provided by the two major trends of decarbonization and digitalization. We have seen a structural increase in the demand for semiconductors, such as renewable energy, data centers and electric vehicles. By building a 300 mm smart power plant in Dresden, we are establishing the necessary prerequisites to successfully meet the growing demand for semiconductor solutions. "
Infineon’s investment will help achieve the goal announced by the European Commission, that is, by 2023, the European Union’s semiconductor production will account for 20% of the global production.
The expansion of the production capacity of the existing Dresden plant will enable Infineon to complete the project quickly and will have considerable scale effect. Construction will begin in 2023, and production activities are planned to start in the autumn of 2026. The expansion will create about 1000 high-quality jobs. When operating at full capacity, the Dresden plant will allow Infineon to earn extra income equivalent to the investment amount every year.
According to Infineon, the factory will be equipped with the latest environmental protection technology and will become one of the most environmentally friendly production facilities of its kind.
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