The German company Infineon was allowed to start building a semiconductor factory in Dresden. The project is estimated at 5 billion euros, production is scheduled to start as early as 2026. According to the maker of chips used in cars, data centers and other industries, this is the largest one-time investment in the company’s history.
Infineon expects government funding of one billion euros for the construction of the plant. The new company is expected to create around 1,000 jobs. At full capacity, the plant will annually produce power semiconductors and analog/mixed solutions for an amount corresponding to the volume of the investments mentioned. The Federal Ministry of Economics has approved the express start of the project – with this format, construction can begin before the EU Commission has completed the subsidy review.
Federal Economics Minister Robert Habeck welcomed the news on Thursday and saw it as proof of Germany’s attractiveness for business enterprises. This is important given that the United States passed the Inflation Reduction Act (IRA), which provides extensive benefits for companies willing to invest in industry in the United States that companies are literally “washing out”. Europe and other regions. In addition, the United States has passed a Semiconductor Industry Development Act that provides subsidies for chipmakers.
The European Union intends to ramp up production of semiconductors following the global chip shortage that has dominated the world in recent years. As part of the European chip law, the European Commission intends to allocate around 15 billion euros to public and private semiconductor companies by 2030.