The Dresden plant is the largest single investment in Infineon’s history, one of the largest investment projects in Germany and opens several months ahead of schedule, according to the company.

Global semiconductor company Infineon Technologies has opened its new €5bn chip factory in Dresden, Germany with the company projecting it will create 1,000 new direct jobs.

The company said the Smart Power Fab is the world’s largest such facility for intelligent power semiconductors and analogue and mixed-signal technologies, and will double its manufacturing capacities at the existing Dresden site.

The plant is the largest single investment in Infineon’s history, one of the largest investment projects in Germany and is going online several months ahead of schedule, according to the company.

“We’re opening our new plant at just the right time,” said Jochen Hanebeck, CEO of Infineon. “Our Smart Power Fab is creating urgently needed capacities for the key technologies of the future, for everything from energy supply for AI data centres to software-defined vehicles and renewable energies.”

The new facility is designed to be quicker and more efficient in its production of “highly modern power semiconductors” for use in “energy-efficient solutions for automotive and industrial applications”, the company said.

It will achieve this by using “rigorous digitalisation” through algorithmic AI support for system and process clearance, while a digital twin was used to aid the facility’s planning and optimisation, according to the company.

Infineon said that interactions between power semiconductors and analogue and mixed-signal components produced at the Smart Power Fab can enable “especially energy-efficient and intelligent system solutions” for use in applications such as wind and solar power systems.

The plant is also designed for sustainable production, according to Infineon, through modern technologies and optimised processes that use no natural gas and integrate closed-loop water systems to reduce waste and recover up to 45pc of energy expended during manufacturing.

“Infineon’s new Smart Power Fab sends out a powerful message about Germany and Europe as a centre of industry,” said German chancellor Friedrich Merz.

“The expansion of Infineon’s production capacity in Dresden also strengthens our technological sovereignty and the resilience of important supply chains in Europe.”

Infineon, which last fiscal year had around 57,000 global employees and revenues of around €14.7bn, received a direct grant from the European Commission of up to €920m for its investment in Dresden.

EU support for Infineon forms part of a strong effort aimed at honing the bloc’s chipmaking capabilities and improving resilience to foreign pressures on the industry.

Earlier this year, Infineon opened a new Cork-based R&D centre focused on its newest innovations in the automotive and consumer microelectronics space, in areas such as battery management, motor control and touchscreens.

Last year, Brenda Barrett, global head of customer logistics management and managing director of Infineon Ireland, which has sites in Dublin and Cork, spoke to SiliconRepublic.com for The Leaders’ Room podcast.

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