Munich-based Infineon Doubles Chip Production Capacity with New Dresden Plant
Munich, June 15, 2026 – The Munich-based DAX-listed company Infineon is preparing to commission its largest single project in history, a new chip factory in Dresden. With an investment of five billion euros, the facility, located in the heart of Europe’s chip industry, known as Silicon Saxony, is poised to double Infineon’s chip production capacities. The official inauguration is scheduled for July 2nd, two months ahead of schedule.
This massive expansion underscores Infineon’s leading role in the power semiconductor market, where it currently holds a 24 percent global market share. Unlike logic chips, power semiconductors are designed to control power flows with extreme energy efficiency. Infineon board member Alexander Gorski emphasized, “Infineon is the technology and quality leader in power semiconductors.” These chips are crucial components for inverters in wind turbines, control elements for electric motors, and power supplies for data centers.
Addressing the Growing Demand for Energy-Efficient Chips
The demand for these specialized chips is soaring, particularly with the rapid growth of artificial intelligence and electric vehicles. Gorski highlighted the critical need for energy-efficient solutions, stating, “AI data centers will consume twice as much electricity in 2030 as they do today. That’s as much as all of Germany.” The new plant will play a vital role in meeting this escalating demand.
The Dresden site has a rich history, with Infineon-then the semiconductor division of Siemens-establishing its first chip factory there in 1994. The latest expansion, referred to as Module 4, signifies the full utilization of the existing premises. “With our new Module 4, we are doubling the capacities at the Dresden site,” said Gorski. This single plant is expected to generate five billion euros in revenue potential, contributing significantly to Infineon’s projected total revenue of 16 billion euros for the current year.
Rapid Construction and State-of-the-Art Automation
The construction of Module 4 was an impressive feat of engineering and project management. The entire process, from obtaining building permits to completion, took only 20 months. Saxony’s Prime Minister Michael Kretschmer praised the efficiency, remarking, “The construction site was a unique experience. Nobody was standing around, it was buzzing everywhere.” The building itself cost two billion euros, with an additional three billion euros allocated for high-performance machinery.
The new facility operates with cutting-edge automation in a meticulously controlled cleanroom environment. Access to the production areas requires specialized protective gear, including head coverings, masks, overalls, gloves, helmets, and safety glasses. Air is continuously circulated from the ceiling through floor vents to eliminate even the tiniest particles, which could compromise the nanometer-scale circuits etched onto silicon wafers. Robots traverse the factory on ceiling-mounted rails, transporting wafers between processing stations at high speeds. Each 300-millimeter wafer can yield up to 30,000 chips, with each chip undergoing up to 40 processing steps in a hermetically sealed, fully automated process.
Strategic Importance for European Chip Independence
The expansion in Dresden is not an isolated event but part of a broader European initiative to strengthen its position in global chip manufacturing. Silicon Saxony is home to 2,500 companies employing 80,000 people in the semiconductor industry. Infineon’s Module 4, along with a new joint factory being built by industry giants TSMC, Infineon, and Bosch, benefits from substantial government subsidies. Infineon alone received nearly one billion euros for Module 4, supported by the European Chips Act. This industrial program aims to increase Europe’s share of global chip production to approximately 20 percent, up from the current 9 percent (with three percent originating from Dresden).
Prime Minister Kretschmer acknowledged the need for state support, stating, “Costs in Germany are no longer competitive. And it is clear that we have to compensate for this disadvantage.” Gorski expressed gratitude for the funding while also praising the local ecosystem: “We benefit greatly from the ecosystem in Silicon Saxony.” The Technical University of Dresden, the only university of excellence in East Germany outside Berlin, serves as a crucial talent incubator, fostering numerous startups.
Despite the high level of automation in the new module, Infineon plans to create 1,000 new jobs. “We have quintupled our training program for this,” said Gorski, with Thomas Richter adding, “We currently have 400 skilled workers in training.”
The commissioning of Infineon’s Module 4 marks a significant milestone for the company and for Europe’s ambition to achieve greater self-sufficiency in semiconductor production, bolstering its industrial competitiveness and technological sovereignty.
Source: tz.de
