Microelectronics

Infineon: Approval for EU Chips Act funding received – IPCEI funding drives innovation projects in Europe

February 20, 2025. The European Commission today approved funding for the Smart Power Fab of Infineon Technologies AG in Dresden under the European Chips Act. The official funding commitment from the Federal Ministry of Economics and Climate Protection (BMWK), which is responsible for disbursing the EU Chips Act funding, is still pending and is expected in the coming months. The Smart Power Fab is already being funded as part of the innovation program IPCEI ME/CT (“Important Project of Common European Interest on Microelectronics and Communication Technologies”). The total funding for the Dresden site amounts to around one billion euros. Construction work had already begun in March 2023 and is progressing successfully. The opening is still planned for 2026.

With the investment in the new plant in Dresden, Infineon is creating up to 1,000 additional jobs in the Saxon state capital. Photo: Infineon

Tags

Promotion, Resilience, Semiconductors, Technological Sovereignty

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Julia Nitzschner

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Robert Krauße

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“With the government funding, Infineon is strengthening the position of Dresden, Germany and Europe as a semiconductor hub and promoting a state-of-the-art innovation and production ecosystem for microelectronics,” says Jochen Hanebeck, CEO of Infineon. “We are increasing capacities for semiconductors in Europe and thus securing stable supply chains in the automotive, security and industrial sectors.”

Infineon is investing a total of five billion euros in the site expansion in Dresden. The German government had already approved the early start of the project. The new building will create up to 1,000 new jobs, although this does not yet include the additional jobs that will be created in the vicinity of the investment. Experts assume a positive job effect of 1:6. At the heart of the Smart Power Fab are technologies that drive decarbonization and digitalization, for example through efficient energy supply solutions for artificial intelligence.

In addition to the funding for the production expansion in Dresden, Infineon is also using the IPCEI ME/CT innovation program as a tailwind for investments in research and development at other company locations. Specifically, Infineon is investing €2.3 billion in innovation projects at its sites in Germany and Austria between 2022 and 2027 as part of IPCEI ME/CT, particularly in the areas of power electronics, analog/mixed-signal technologies, sensor technology and high-frequency applications.

Infineon is also planning extensive measures to strengthen cooperation between science and industry as part of the EU funding programs. A central element is close cooperation with universities, research institutions and start-ups in Europe. Infineon offers young talents a platform to develop and promote sustainable innovations. These activities promote the practical application of scientific findings and strengthen Europe’s position as a center of innovation.

About Infineon

Infineon Technologies AG is a leading global provider of semiconductor solutions for power systems and the Internet of Things (IoT). With its products and solutions, Infineon is driving decarbonization and digitalization. The company has around 58,060 employees worldwide (end of September 2024) and generated sales of around 15 billion euros in the 2024 financial year (end of September).

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