Infineon gets permission to build chip factory in Germany

Infineon has received permission to build a new chip factory in Germany. The chipmaker reports this on Thursday. The company is investing 5 billion euros in the factory, which will be located in Dresden and should start production in 2026.

Infineon’s Board of Directors has given permission for the construction of the project in Dresden. The German Ministry of Economic Affairs and Climate Policy has also given its approval. This will allow Infineon to start construction while the European Commission looks into the legal aspects and possible state aid the company hopes to receive. Infineon is asking for a billion euros in subsidy from the German government. To this end, it will claim the European Chips Act, which releases billions in subsidies for the chip sector from the EU and individual member states.

Infineon will produce power semiconductors and analog and mixed-signal chips in the new German factory. Such chips are used in power supplies, for example for use in charging systems, cars or data centres. The company is investing 5 billion euros in the factory, making it Infineon’s largest investment to date. According to the manufacturer, the project will create 1000 permanent jobs. Construction will begin early this year and production should begin in the fall of 2026. The factory will be located on the existing Infineon campus in Dresden.

A render of the new chip factory in Dresden. Source: Infineon