TL;DRInfineon is opening a €5 billion power chip factory in Dresden on 2 July, backed by €1 billion in EU Chips Act subsidies. The fab is the act’s first major success after Intel’s Magdeburg project was cancelled..
Infineon Technologies is preparing to open its largest single investment, a €5 billion semiconductor factory on its Dresden campus, on 2 July. The Smart Power Fab, which received approximately €1 billion in EU Chips Act subsidies, will produce power semiconductors used in AI data centres, electric vehicles, and renewable energy systems.
The opening arrives three months ahead of the original schedule. “The AI data centres currently being built and planned around the world will consume twice as much electricity in 2030 as they do today,” said chief operating officer Alexander Gorski. “That’s as much as the entire Federal Republic of Germany.”
A rare win for the Chips Act
The new plant is a conspicuous success for the EU’s semiconductor sovereignty strategy, which was drafted during Covid-era supply shortages with the goal of doubling Europe’s share of global chip production from 10% to 20% by 2030. That target is widely considered unattainable, and the act’s flagship project, a cutting-edge Intel fab in Magdeburg, was cancelled in August 2025 after Intel’s CEO cited insufficient customer commitments.
