eu backs infineon's dresden fab with chips act funding

2025-02-22 general

Dresden, Saturday, 22 February 2025.
the european commission has approved funding for infineon’s smart power fab in dresden under the eu chips act. this move aims to reduce europe’s reliance on asian semiconductor manufacturers. infineon is investing a total of five billion euros in the expansion. the german government approved the early start of the project. the new development will create up to 1,000 new jobs. experts assume a positive job effect of 1:6. the fab opening is planned for 2026.

investment details and strategic impact

Infineon is receiving approximately 920 million euros in direct grants from Germany for this project [4][5]. This substantial investment underscores the EU’s commitment to bolstering its semiconductor industry [5]. The total investment in the Dresden site, including other funding, reaches around one billion euros [1]. Infineon’s CEO, Jochen Hanebeck, stated that this investment strengthens Europe as a semiconductor hub and secures supply chains for key sectors, including automotive and industrial [1]. The company’s focus is on technologies that accelerate decarbonization and digitalization [1].

broader implications for infineon and the eu

The Dresden fab is projected to reach full capacity by 2031 [4][5]. It will produce discrete power technologies and analog/mixed-signal integrated circuits [4]. This facility will enhance the EU’s security of supply and technological autonomy in semiconductor technologies [6]. Infineon will also invest in research and development of next-generation chips in Europe [6]. They will contribute to crisis preparedness by prioritizing orders during supply shortages [4][6]. The company will provide access to its facility for SMEs and research organizations for testing and prototyping [6].

financial performance and market position

Infineon generated revenue of approximately 15 billion euros in the 2024 fiscal year [2]. The company had around 58,060 employees worldwide as of September 2024 [2]. These figures highlight Infineon’s position as a major player in the semiconductor industry [2]. The EU’s support, coupled with Infineon’s strategic investments, may positively influence the company’s stock value [GPT]. Investors often view government backing and expansion into key technology areas as favorable indicators [GPT].

eu chips act and industry context

The approval of funding for Infineon is the sixth such decision based on the EU Chips Act [4]. This act aims to have the EU produce at least 20% of the world’s cutting-edge semiconductors by 2030 [5]. Other companies, such as STMicroelectronics and European Semiconductor Manufacturing Company, have also received support under this initiative [4]. These investments are part of a broader effort to address chip shortages and strengthen the European semiconductor ecosystem [5]. The US Chips Act provided $52 billion, showing the global scale of these efforts [5].

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eu chips act semiconductor funding