Infineon receives approval for funding under the EU Chips Act – IPCEI funding drives innovation projects in Europe forward

The European Commission today approved funding under the European Chips Act for the Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) Smart Power Fab in Dresden. The official funding approval from the Federal Ministry for Economic Affairs and Climate Action (BMWK), which is responsible for the disbursement of EU Chips Act funding, is still pending and is expected within the next few months. Additionally, the Smart Power Fab is already receiving support under the European Commission’s IPCEI ME/CT (“Important Project of Common European Interest on Microelectronics and Communication Technologies”) innovation program. The total funding for the Dresden site amounts to around one billion euros. Construction began in March 2023 and is progressing successfully. The Fab opening is planned for 2026.

“This government-supported investment by Infineon strengthens the position of Dresden, Germany and Europe as a semiconductor hub and promotes a state-of-the-art innovation and production ecosystem for microelectronics,” says Jochen Hanebeck, CEO of Infineon. “We are increasing semiconductor capacity in Europe and thus helping secure stable supply chains in automotive, security and industrial fields.”

Infineon is investing a total of five billion euros in the expansion of its Dresden site. The German federal government previously approved the early start of the project. The new development will create up to 1,000 new jobs, not including the additional jobs created in the ecosystem of the investment. Experts assume a positive job effect of 1:6. The core of the Smart Power Fab will focus on technologies that further accelerate decarbonization and digitalization for example by driving energy-efficient power solutions for Artificial Intelligence.

In addition to the funding for the expansion of manufacturing in Dresden, Infineon is also leveraging the IPCEI ME/CT innovation program to drive investments in research and development at other corporate locations. Between 2022 and 2027 Infineon will have invested 2.3 billion euros in innovation projects at its sites in Germany and Austria, concentrated in the fields of power electronics, analog/mixed-signal technologies, sensor technologies and radio frequency applications.

As part of the EU funding programs, Infineon is furthermore planning comprehensive measures to promote partnership between science and industry. A central element is close collaboration with European universities, research institutions and start-ups. Infineon offers talented young individuals a platform for developing and advancing sustainable innovations. These activities promote the hands-on application of scientific knowledge and strengthen Europe’s position as an innovation hub.