Infineon receives permission to build a chip factory in Germany

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

The board of directors of Infineon has given permission for the construction of the project in Dresden. The German Ministry of Economic Affairs and Climate has also given approval. This allows Infineon to start construction, while the European Commission looks at the legal aspects and possible state aid that the company hopes to receive. Infineon is asking for a billion euros in subsidy from the German government. To this end, it will rely on 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, among other things, in power supplies, for example for use in charging systems, cars or data centers. 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 1,000 permanent jobs. Construction will begin early this year and production should begin in fall 2026. The factory will be located on the existing Infineon campus in Dresden.

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