Infineon: New 5 billion euro semiconductor factory in Dresden

Record financial year for Infineon: from October 2021 to September 2022, the German chip giant turned over 14.2 billion euros – more than 3 billion (+29 percent) more than a year earlier. Things also looked rosy in the last quarter of the financial year, with a turnover of no less than 4.1 billion euros (+15 percent compared to the previous quarter, +38 percent compared to last year). All business units grew.

Infineon goes against the trend in the industry, which has slipped from a record shortage of chips to a recession. While many other semiconductor manufacturers are reducing their investments or even laying off people, Infineon wants to expand its own production. It was only recently announced that Globalfoundries (GF) is cutting jobs – GF also has a semiconductor factory in Dresden.

The continued growth is also due to the target markets: Infineon is an important supplier for car manufacturers that are still catching up with the previous chip shortage. The company also supplies electronics for solar panels and wind turbines, production of which is currently booming.

To this end, Infineon plans to build a new semiconductor factory next to its existing factory in Dresden. The project is expected to cost $5 billion, which would be the largest single investment in the company’s history. When the semiconductor factory is commissioned at the end of 2026, approximately 1,000 new jobs are expected to be created. According to the current planning, the production expansion should generate an annual increase in turnover equal to the investment volume, ie about 5 billion euros. Construction is scheduled to start in 2023.

However, Infineon makes construction dependent on subsidies from Saxony, the German federal government and at the EU level. In its annual report, the company writes unequivocally: “[Wir] relying on appropriate funding under the European Chip Act” and the work will only be completed “subject to appropriate government funding”.

Infineon plans to increasingly produce analog and mixed-signal chips in Dresden, as well as power semiconductors (discrete power) on 300-millimeter wafers, mainly containing components for power converters. Infineon is not commenting on the intended production technology – the company is generally secretive about its production processes and capabilities, and the texture widths of the planned chips are of minor importance.

According to a company brochure, Infineon has so far manufactured semiconductor components in Dresden with structures up to 90 nanometers on 200 millimeter wafers. In addition, since 2013, power semiconductors have been produced on 300 millimeter thin wafers (since 2021 also in Villach),

The company has other semiconductor factories around the world. Just this year, a factory expansion for the equivalent of 1.7 billion euros was commissioned in Malaysia, which produces power semiconductors. Until now, Infineon had more modern logic chips, such as those with 40 and 28 nm technology, manufactured by chip contract manufacturers TSMC, UMC and Globalfoundries.


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