Infineon is expanding its supply of analog and mixed-signal components by building a new fab in Dresden, Germany.

Infineon Technologies (Korea CEO Seung-Soo Lee) announced on the 17th that it will start construction of a new plant for analog/mixed signal technology and power semiconductors.

Infineon's Board of Management and Supervisory Board have approved the early start of the project, as has the German Federal Ministry for Economic Affairs and Climate Action (BMWK).

Infineon is seeking around €1 billion in public funding and plans to invest a total of around €5 billion.

Jochen Hanebeck, CEO of Infineon, said: “With the expansion of our production capacities, Infineon will contribute to two growth themes: decarbonization and digitalization. For example, there is a structural increase in semiconductor demand in the areas of renewable energy, data centers and electromobility. “By building a 300mm smart power fab in Dresden, Infineon will successfully meet the growing demand for semiconductor solutions,” he said.

The new fab is expected to contribute to decarbonization and digitalization.

Analog/mixed-signal components are used in power supply systems for energy-efficient chargers, small engine control units for vehicles, data centers, and IoT applications.

Combining power semiconductors with analog/mixed-signal components enables energy-efficient, intelligent system solutions.

The new plant is expected to begin construction in 2023 and become operational in fall 2026.

The expansion will create approximately 1,000 high-quality jobs. Once the new fab in Dresden is fully operational, it is expected to generate additional annual sales equivalent to the planned investment.