Infineon Opens €5 Billion Smart Power Fab in Dresden, Creating World's Largest Power Semiconductor Manufacturing Site
The new 300mm semiconductor fab doubles Infineon's production capacity, strengthens Europe's chip manufacturing ecosystem and supports rising demand for AI data centres, electric vehicles, renewable energy and industrial power semiconductors.
Infineon Technologies has officially opened its Smart Power Fab in Dresden, Germany, marking a major milestone in Europe's semiconductor manufacturing ambitions. The new facility is described as the world's largest manufacturing site for power semiconductors and analogue/mixed-signal technologies and represents the company's largest single investment to date.
Built with an investment of approximately €5 billion, the plant began operations several months ahead of schedule and is expected to significantly expand Infineon's production capacity. The facility will manufacture 300mm power semiconductor devices used in artificial intelligence data centres, electric vehicles, renewable energy systems and a wide range of industrial applications.
The Smart Power Fab doubles Infineon's manufacturing capacity at its Dresden campus and is expected to create around 1,000 highly skilled jobs. At full production, the site could contribute up to €5 billion in annual revenue, reflecting the growing demand for power management technologies across multiple industries.
Power semiconductors are becoming increasingly important as artificial intelligence infrastructure expands and industries seek more efficient energy management solutions. These devices play a critical role in controlling and converting electrical power for applications including cloud computing, electric mobility, renewable energy generation and industrial automation.
The opening of the Dresden facility also strengthens Europe's efforts to expand domestic semiconductor manufacturing and improve supply chain resilience. The investment supports broader regional initiatives aimed at increasing advanced chip production capacity and reducing dependence on overseas suppliers.
Infineon said the Smart Power Fab incorporates advanced manufacturing technologies alongside sustainable production practices, including the use of renewable electricity and resource-efficient processes. The company expects the facility to play a key role in meeting long-term demand for high-performance power semiconductors across the automotive, industrial, communications and artificial intelligence sectors while reinforcing Europe's position in the global semiconductor industry.
