Infineon Opens Smart Power Fab in Dresden

The Smart Power Fab will create 1,000 new, direct jobs. With the new factory, Infineon is doubling its production capacity at its Dresden site, thereby creating the world’s largest factory for smart power semiconductors and analog/mixed-signal technologies.

“We’re opening our new plant at exactly the right time,” says Jochen Hanebeck, CEO of Infineon Technologies AG. “With the Smart Power Fab, we are creating urgently needed capacity for key technologies of the future—from powering AI data centers to software-defined vehicles and renewable energy. Infineon is thus providing a major impetus to enable the global AI revolution and secure supply chains in critical industries. With this step, we are solidifying our global leadership position as a leading manufacturer of power semiconductors and analog/mixed-signal technologies.”

“Infineon’s new Smart Power Fab sends a strong signal for Germany and Europe as industrial hubs,” says German Federal Chancellor Friedrich Merz. “This investment demonstrates that state-of-the-art and competitive semiconductor manufacturing is possible here in Germany. Power semiconductors are a key technology for the energy transition, the future of mobility, and our AI infrastructure—and are therefore of central importance to our economic sustainability. The expansion of Infineon’s manufacturing capacity in Dresden simultaneously strengthens our technological sovereignty and the resilience of key supply chains in Europe.”

“Microelectronics is the key technology of the 21st century. It is the foundation for innovation, competitiveness, and economic progress,” says Michael Kretschmer, Minister President of the German Federal State of Saxony. “The fact that Dresden is home to Europe’s largest microelectronics cluster is a decisive locational advantage. Infineon’s new Smart Power Fab strengthens this unique ecosystem and demonstrates that large-scale industrial projects can be implemented safely and swiftly with the right framework conditions. This sends a strong signal for the region as an industrial hub and for the future of microelectronics in Europe.”

Depending on demand, production at the new Smart Power Fab can be scaled up twice as fast as before. This is made possible by comprehensive digitalization. For example, the building and the optimal layout of the machinery were pre-planned and optimized using a digital twin. Equipment and process approval is supported by the use of AI algorithms. Furthermore, by connecting with the Infineon plant in Villach as part of a “One Virtual Fab” concept, processes and products can be qualified significantly faster than in the past. The accelerated ramp-up pace allows Infineon to effectively and flexibly capitalize on current market opportunities—including in the field of AI.

In the future, chips from Dresden will contribute, among other things, to the efficient power supply of AI data centers. The chips are also used in other industrial and automotive applications, including wind and solar power plants as well as software-defined vehicles. One example is smart switches that not only control loads but also monitor the flow of current. The interaction between power semiconductors and analog/mixed-signal components enables particularly energy-efficient and intelligent system solutions—hence the name “Smart Power Fab.”

With this expansion, Infineon Dresden is strengthening its existing position as a world-leading hub for power semiconductors and analog/mixed-signal technologies, while also expanding the European leadership role of the entire “Silicon Saxony” semiconductor cluster. With the Smart Power Fab, Infineon is creating a total of 1,000 new jobs in Dresden. This will also have positive effects on the region’s economic development and create jobs among suppliers and within the broader ecosystem: according to studies, one job in a cleanroom creates six additional jobs in the surrounding area. Currently, more than 80,000 people are already employed in the “Silicon Saxony” cluster.

With the Smart Power Fab, Infineon is also setting new standards in sustainable manufacturing. Modern manufacturing technologies and optimized energy and resource processes help reduce energy consumption and further improve the environmental footprint of chip production. For example, the new facility does not use natural gas and reduces water consumption through water treatment and the use of closed-loop systems. Additionally, approximately 90 percent of the water used is to be recycled back into the system, and up to 45 percent of the energy consumed is to be recovered.