Infineon has won approval to invest 5 billion euros (currently about 36.65 billion yuan) to begin construction of a semiconductor factory in Dresden, Germany, which will start production in 2026, the company said Thursday, Feb. 19.
The automotive and data center chipmaker said it will be the largest investment in its history. Infineon is seeking 1 billion euros in public funding for the plant, which the company says will create about 1,000 jobs.
Infineon said the plant will produce power semiconductors and analog/mixed-signal components, and at full capacity, its annual revenue will be comparable to the investment. Analog/mixed-signal components are used in power supply systems such as energy-efficient charging systems, small vehicle motor control units, data centers and Internet of Things (IoT) applications. The interaction of power semiconductors and analog/mixed-signal components makes it possible to create particularly energy-efficient and intelligent system solutions.
The German Ministry of Economics approved the early start of the project, which allows construction to begin before the European Commission completes its examination of the legal subsidy aspects.
The EU is looking to strengthen semiconductor production amid a global chip shortage over the past two years. Under the European Chip Act, the European Commission has set aside a total of 15 billion euros for public and private semiconductor projects until 2030.
