Dresden semiconductor plant: Infineon's billion-euro funding is now official

Infineon's funding for a new semiconductor plant in Dresden has now been secured. The Federal Ministry for Economic Affairs and Energy (BMWK) has given its final approval for 920 million euros in subsidies for the construction. This was considered a formality after the EU Commission had already given the green light.

Individual subsidies such as these are permitted under the EU Chips Act. While the latter provides the legal framework, the money itself comes from the German government. Infineon will also receive several million euros from the "Important Project of Common European Interest on Microelectronics and Communication Technologies" (IPCEI ME/CT).

In total, Infineon will receive around one billion euros in funding. According to the manufacturer, the new semiconductor plant will cost a good five billion euros in total. The shell construction is now almost complete; Infineon plans to start series production there from fall 2026. Around 1000 jobs are to be created directly at the plant; Infineon expects a further 6000 indirectly related jobs in the supply chain.

Power semiconductors and ICs

Infineon calls the semiconductor plant a Smart Power Fab. In it, the manufacturer intends to produce two types of chips on 300 mm wafers: firstly, stand-alone power semiconductors for power switching, management and control in electronic systems, and secondly, integrated circuits that process both digital and analog signals. The semiconductors produced are intended for industrial, automotive and consumer applications. Rough structures are sufficient here.

For more modern semiconductors, Infineon participates in the joint venture European Semiconductor Manufacturing Company (ESMC), led by world market leader TSMC. The plant is also being built in Dresden and will cost a good 10 billion euros in total; 5 billion euros will be subsidized by the state. ESMC produces chips with structures of 28 to 12 nanometers.

(mma)