Infineon plans for €5 billion wafer fab in Dresden

Infineon plans for €5 billion wafer fab in Dresden

Business news |
By Peter Clarke

Infineon’s supervisory board has approved further planning for the construction of a 300mm analog/mixed-signal and power semiconductor wafer fab in Dresden, Germany.

The fab is expected to cost €5 billion (about US$5 billion) but whether it goes ahead or not is “subject to adequate public funding,” according to an Infineon press release.

In a statement Jochen Hanebeck, who recently took over as CEO of Infineon, said: “We are pleased to have political support for an investment at the Dresden site (Germany) and we are counting on adequate funding through the European Chips Act. We concluded the challenging 2022 fiscal year very successfully, with an excellent fourth quarter. The 2023 fiscal year has also started well. In view of ongoing macroeconomic and geopolitical uncertainties, heightened vigilance is required in the coming quarters. We are prepared to act swiftly and flexibly if necessary.”

The Dresden wafer fab would would have the potential capacity to generate annual revenue equal to the level of the investment. The new factory is expected to create up to 1,000 jobs and could be ready to start production in autumn of 2026, Infineon said.

Good quarter, good year

The development was announced alongside Infineon’s fiscal fourth quarter and full fiscal year results.

Infineon had revenue for the fourth quarter ended September 30, 2022, of €4,143 billion. This was up 15 percent sequentially and up 38 percent annually. The company made a profit of €735 million, up 58 percent annually.

Based on an assumed exchange rate of US$1.00 to the euro, Infineon expects to generate revenue of around €4.0 billion in the first quarter of the 2023 fiscal year.

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