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Factory expansion: Infineon initiates final construction phase

Construction workers stand on the site of Infineon's Smart Power Fab / Photo: Sebastian Kahnert/dpa
Construction workers stand on the site of Infineon's Smart Power Fab / Photo: Sebastian Kahnert/dpa

A milestone has been reached on the way to Europe's largest chip factory. Having received the final building permit, Infineon can now erect the building for the "Smart Power Fab".

Infineon's factory expansion in the north of Dresden is making progress: the chip manufacturer has initiated the final construction phase for the "Smart Power Fab". Just over a year after the start of construction, Minister President Michael Kretschmer handed over the last outstanding building permit on Thursday. Kretschmer congratulated the company. "The goal in Europe is that we can benefit more from this major growth market of microelectronics, that we not only buy from other regions of the world, but that the value creation takes place here, the employees are employed here, the innovations take place here," said Kretschmer. In order to achieve the European target of a 20 percent share of the global market, factories like the one in Dresden are needed.

"We are right on budget, both in terms of time and money," said Raik Brettschneider, Vice President of the Dresden site. Infineon is investing a total of five billion euros in the factory expansion. Now that the final building permit has been granted, construction can begin. The excavation of the building pit has now been completed. This involved excavating 450,000 cubic meters of earth - equivalent to the volume of 180 Olympic swimming pools. The excavation pit is 22 meters deep and provides the basis for the concrete foundation slab, which is up to 190 centimetres thick and should reduce vibrations from passing streetcars to a minimum so as not to disrupt production.

The start of production is planned for 2026. According to the company, the largest chip factory in Europe will be located in Dresden by the time it opens. The new factory will manufacture semiconductors that promote decarbonization and digitalization. They will be used in the automotive industry and in the renewable energy sector. The expansion is expected to create around 1000 new jobs.

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