Infineon to open 5 billion euro Dresden chip fab on July 2
Why it matters: The EU-backed plant adds power-chip capacity for AI data centers after other European chip projects stalled.
Infineon Technologies is set to open a 5 billion euro semiconductor plant in Dresden on July 2, marking the company’s largest single investment and a high-profile test of Europe’s push to rebuild chip manufacturing. The new fab, an extension of Infineon’s Dresden campus, received about 1 billion euros in EU subsidies under the Chips Act. Infineon said the site will make power chips used in AI data centers, where electricity demand is rising sharply. Chief operating officer Alexander Gorski said production will ramp up over time based on demand, with the site potentially adding as much as 5 billion euros in annual revenue. The opening comes after other heavily subsidized European chip plans, including Intel’s Magdeburg project, were scrapped.