February 24, 2025 /SemiMedia/ — The European Commission has approved nearly €1 billion in funding to support Infineon’s smart power fab project in Dresden, Germany. The project, which is set to boost semiconductor production capacity in Europe, will receive up to €920 million in direct grants from Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK). Final approval of the funding is expected in the coming months.

This 300mm smart power fab is part of the EU’s “Important Projects of Common European Interest” (IPCEI ME/CT) initiative, which supports innovation in microelectronics and communication technologies. Construction began in March 2023, with production slated to start in 2026 and full-scale operations expected by 2031.

Infineon CEO Jochen Hanebeck commented: "This government support strengthens the position of Dresden, Germany, and Europe as a semiconductor hub, fostering cutting-edge innovation and production ecosystems in microelectronics. Our investment will increase Europe’s semiconductor capacity, ensuring stable supply chains for automotive, security, and industrial sectors."

Infineon is investing a total of €5 billion to expand its Dresden facility, with the German government having already approved an early start to the project.