EU funding for Infineon Dresden smart power fab approved
The European Commission has approved almost €1bn of funding under the European Chips Act for the Smart Power Fab being built by Infineon Technology in Dresden, Germany.
The official funding approval for a direct grant of up to €920m from the Federal Ministry for Economic Affairs and Climate Action (BMWK), which is responsible for the disbursement of EU Chips Act funding, is still pending and is expected within the next few months.
Infineon gets permit for final phase of €5bn Dresden smart power fab
The 300mm Smart Power Fab is already receiving support under the European Commission’s IPCEI ME/CT (“Important Project of Common European Interest on Microelectronics and Communication Technologies”) innovation programme.
Construction began in March 2023 and is progressing successfully. The Fab opening is planned for 2026 with full capacity in 2031.
“This government-supported investment by Infineon strengthens the position of Dresden, Germany and Europe as a semiconductor hub and promotes a state-of-the-art innovation and production ecosystem for microelectronics,” says Jochen Hanebeck, CEO of Infineon. “We are increasing semiconductor capacity in Europe and thus helping secure stable supply chains in automotive, security and industrial fields.”
Infineon is investing a total of €5bn in the expansion of its Dresden site. The German federal government previously approved the early start of the project.
“The €920 million German measure approved today supports a cutting-edge megafab in Dresden. This project will support the development of a strong and resilient digital economy in Europe and ensure a secure supply of semiconductors for the industry while limiting any potential distortion of competition,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition at the Commission.
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