Infineon Technologies AG opened its Smart Power Fab in Dresden on July 2, 2026, several months ahead of schedule, according to the company. The plant represents an investment of five billion euros, the largest single investment in Infineon's history, and creates 1,000 new direct jobs. The facility doubles Infineon's manufacturing capacity at the Dresden site, making it the world's largest factory for intelligent power semiconductors and analog/mixed-signal technologies.
"We're opening our new plant at just the right time," said Jochen Hanebeck, CEO of Infineon Technologies AG. He said the fab is "creating urgently needed capacities for the key technologies of the future, for everything from energy supply for AI data centers to software-defined vehicles and renewable energies," and said it strengthens Infineon's position as a leading manufacturer of power semiconductors and analog/mixed-signal technologies. German Federal Chancellor Friedrich Merz said the investment "shows that competitive, cutting-edge semiconductor production in our country is possible."
The fab uses digitalization to accelerate production to twice its previous speed, depending on demand, with the building and machine layout pre-planned using a digital twin and AI algorithms supporting system and process clearance. Its connection to Infineon's Villach plant as "One Virtual Fab" speeds up qualification of processes and products. The plant requires no natural gas, reintroduces about 90 percent of water used through closed-loop systems, and recovers up to 45 percent of energy used. Over 80,000 people are currently employed in the surrounding "Silicon Saxony" cluster.
