Dresden: Infineon accelerates completion of Smart Power Fab

Due to the very dynamic demand in the field of artificial intelligence, investments will be increased by around €500 million in fiscal year 2026. One focus here is the completion and start of production at Infineon's fourth manufacturing facility in Dresden.

View of a clean room at Infineon in Dresden
Source Infineon Technologies

"Infineon has made a successful start to fiscal year 2026," says Jochen Hanebeck, CEO of Infineon. "The very dynamic demand for AI in an otherwise subdued market environment is giving Infineon a strong tailwind. The focus is currently on power supply in AI data centers, and the expansion of the network infrastructure will be added in the coming years. To serve our customers in the best possible way, we are gearing our production capacities to meet further increases in demand and are bringing forward our investments in this area. A large part of this will be accounted for by the faster ramp-up of our new Smart Power Fab in Dresden, which we will open in the summer of 2026 – just at the right time." 

With the expansion of its Dresden site, Infineon will meet customer demand for renewable energies, efficient data centers, and electromobility, for example. Infineon itself is investing over five billion euros, creating up to 1,000 new jobs, not including the additional jobs that will be created in the context of the investment. 

With the Smart Power Fab, Infineon is helping to strengthen European supply chains in the field of microelectronics and is also consolidating the position of Dresden and Silicon Saxony as Europe's largest semiconductor hub. Construction of the Smart Power Fab – currently one of the largest construction sites in Germany – is progressing according to plan. Infineon officially broke ground in May 2023. At the beginning of April 2025, Infineon celebrated the topping-out ceremony together with everyone involved in the construction site. Production is scheduled to start in 2026.