Europe approves €920m grant for Infineon Dresden smart power fab

The European Commission has approved a €920m German aid measure to Infineon for its new semiconductor smart power fab in Dresden.

The measure allows the company to complete the MEGAFAB-DD project and produce a wide range of chips. Work on the site started two years ago and is due to be completed in 2026.

Official funding approval from the Federal Ministry for Economic Affairs and Climate Action (BMWK), responsible for the disbursement of EU Chips Act funding, is still pending and ‘expected within the next few months,’ according to Infineon.

“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,” said 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.”