Infineon receives funding approval - IPCEI support accelerates innovation projects across Europe

     Under the European Chip Act, the European Commission has officially approved funding for Infineon's smart power plant in Dresden. However, final funding approval from the Federal Ministry of Economic Affairs and Climate Action (BMWK), which oversees the spending of EU chip Bill funds, is still pending and is expected to be granted in the coming months.

     In addition, smart power fabs already benefit from the support of the European Commission's IPCEI ME/CT (" Important Project of Common European Interest in Microelectronics and Communication Technologies ") innovation program. The total funding for the Dresden site is about 1 billion euros. Construction of the plant began in March 2023 and is currently on schedule, with an expected opening in 2026.

     Infineon will invest 5 billion euros to expand its Dresden plant. The German federal government had previously approved the early start of the project. This expansion will create up to 1,000 new jobs, not including additional jobs generated in the broader investment ecosystem. Experts expect the employment multiplier effect to reach 1:6. The Smart Power Factory will focus on advancing technologies that accelerate decarbonization and digitization, in particular by providing energy-efficient power solutions for AI applications.

     In addition to funding the production expansion in Dresden, Infineon uses the IPCEI ME/CT innovation program to drive R&D investments in other companies. Between 2022 and 2027, the company will allocate €2.3 billion for its innovation initiatives in Germany and Austria. These efforts are focused on power electronics, analog/mixed-signal technologies, sensor solutions, and RF applications.

     As part of the EU funding program, Infineon is also implementing comprehensive measures to strengthen cooperation between industry and academia. A key component of the strategy is the promotion of partnerships with European universities, research institutes and start-ups. Infineon provides a platform for young talent to develop and refine sustainable innovations. These efforts promote the practical application of scientific knowledge while strengthening Europe's position as a leading innovation hub.