Infineon opens world's largest smart chip plant in Germany, boosting Europe's semiconductor independence

Infineon Technologies opened what it calls the world's largest factory for intelligent semiconductors in Dresden, Germany, on Tuesday, aiming to reduce Europe's reliance on chip supplies from the United States and Asia.

An employee of Infineon, a German manufacturer and designer of semiconductor devices for automotive, power and security systems, walks through a cleanroom during a media tour through Infineon's new "Smart Power Fab" plant in Dresden, Germany, June 10, 2026.

REUTERS/Matthias Rietschel

The plant, located about 100 kilometers from the Polish border, has already been producing advanced semiconductors for several days ahead of its official opening.

Dresden sits at the heart of "Silicon Saxony", the region that already produces one in three chips made in Europe — a share the new facility is expected to increase further.

"We will mass-produce microcontrollers in Germany. They are needed for car production. Given the current geopolitical risks, it is very important that we have large, strong factories here in Europe", said Alexander Gorski, a member of Infineon Technologies' management board.

The European Union backed the project with EUR 1 billion in funding, out of a total construction and equipment cost of EUR 5 billion, reflecting the investment's strategic importance.

Demand for the Dresden plant's output is already coming primarily from the automotive, energy and artificial intelligence sectors, according to German media reports. The factory itself is expected to create 1,000 new jobs, with many more anticipated across the wider region.

Infineon said the site was designed to minimize its environmental footprint, with electricity to be sourced from renewables and water reused multiple times through internal recycling processes. The company added that microchips themselves are a key building block for a more sustainable future.

(jh)

Source: Polish Radio