Infineon Technologies is celebrating the largest single investment in the company’s history: five billion euros are being invested in a new semiconductor plant in Dresden, right next to the existing Infineon Fab. It will be closely linked to the Austrian site in Villach, which Infineon calls “One Virtual Fab”. Political celebrities from the mayor to the President of the EU Commission gathered in Dresden on Tuesday for the ceremonial start of construction. Infineon can hope for one billion subsidies after the EU Council and Parliament have agreed on the Chips Act.
“Dresden is without a doubt a digital lighthouse in Europe,” said EU Commission President Ursula von der Leyen. The ground-breaking ceremony for the semiconductor factory called Smart Power Fab was very symbolic, since nothing was cut at all. “With the groundbreaking, Infineon is making an important contribution to the green and digital transformation of our society,” said Infineon CEO Jochen Hanebeck. In a few years, the semiconductors from Dresden and Villach would “drive forward decarbonization and digitization”.
Preparatory measures are currently taking place on the site; the start of the shell construction is planned for autumn, three years later production is to start. “In times of growing geopolitical risks, it is great news for Europe that Infineon is investing massively in the production of semiconductors in Dresden,” van der Leyen saw the project through a different lens, “We need more such projects here in Europe because the demand for microchips continues to rise rapidly.”
1,100 jobs
Federal Chancellor Olaf Scholz (SPD) tried to bridge the gap between the two perspectives: “The chips manufactured in Dresden help to secure jobs and make our industry – from medium-sized companies to large corporations – more resilient. This is where the components that are needed for the upcoming investments in environmentally friendly technologies.” The Smart Power Fab is said to have 1,100 employees in full operation, who will bring annual sales of five billion euros to Infineon.
Saxony’s Prime Minister Michael Kretschmer (CDU) underlined his own contributions: The project increases “the attractiveness of Silicon Saxony as a competence location for the global semiconductor industry. The Free State of Saxony has been supporting this unique ecosystem through investments in science for many years.” Dresden’s Lord Mayor Dirk Hilbert (FDP) praised “the extraordinarily good interaction between companies, institutes and start-ups as well as administration and politics” at the chip factory. His city can be “confident and proud that the world is supplied with the chips that are in demand for renewable energies, electromobility and data centers from here.”
In February, the German Ministry of Economic Affairs (BMWK) granted approval for the early start of the project. This means that work can already begin during the state aid assessment by the European Commission.
Listen to the topic Chip factories in Germany the c’t podcast Bit-Rauschen, episode 2023/8, from April 12th:
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