The construction of the Smart Power Fab is Infineon's response to two major social challenges: Digitalization and decarbonization. Both trends will significantly increase the demand for chips worldwide. With innovative semiconductor solutions – developed and manufactured in Dresden – Infineon wants to support the transformation towards a climate-neutral and digital world.

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With the Smart Power Fab in Dresden, Infineon is setting a strong signal – to Germany, to Europe, to the world. The Dresden site has for decades been the center of Europe's largest microelectronics cluster, Silicon Saxony. The new Smart Power Fab continues this success story.

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Another milestone in the construction of the new factory has been reached: Since October 2025, the Smart Power Fab has been Ready for Equipment. The essential construction work on the building has been completed, the necessary pipes and connections for the most important media such as electricity, water and gas supply were laid and the new clean room was largely finished. This meant that the first production system could be installed – almost a month earlier than originally planned. Around 1,000 more systems are to follow.

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Artificial intelligence (AI) delivers impressive results: It can perform tasks that require human intelligence. AI continuously learns and makes logical decisions.

The growing demand for intelligent assistants is increasing the power requirements in data centers worldwide. To reduce their power consumption, Infineon is also developing corresponding semiconductor solutions at its Dresden site.

In future, the power supplies in data centers will also include chips from the Smart Power Fab. They optimize energy consumption by dynamically adjusting electronic loads, switching extremely efficiently and reducing downtimes in data centers. The result is significantly better energy efficiency and higher technological performance.

Infineon has already taken important steps towards CO2-neutral production. This includes the existing buildings and production facilities in Dresden as well as the construction of the new Smart Power Fab.

Thanks to intelligent solutions, Infineon's Dresden site has already reduced its electricity consumption by around ten percent and its heating consumption by over 60 percent in recent years.

This is just the beginning: in the coming years, Infineon expects significant savings in air conditioning, compressed air, water treatment and heating systems. The Smart Power Fab will set new standards in terms of the consumption of important resources such as energy and water. The investment in Dresden is part of Infineon's strategy to become CO2-neutral by 2030.

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Infineon has undertaken a number of measures around the Dresden site to create a species-appropriate living environment for animals. These include bat boxes and nesting aids for birds. Additional shelters have also been created for lizards and smooth snakes. Infineon is financing these projects as part of the construction work on the Smart Power Fab.

Other environmental projects include work on the Flössertgraben in Klotzsche, which is improving the living conditions for plants and animals. Local residents will also have a new place to relax. Infineon also financed the planting of street trees along the Wilschdorfer Mühlweg and the reforestation of a woodland area in the Osterzgebirge.

Construction progress 2023 – 2026

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The Smart Power Fab is funded by the European Union, the Federal Republic of Germany and the Free State of Saxony.

Sponsors: European Union NextGenerationEU, Federal Ministry for Economic Affairs and Energy based on a resolution of the German Bundestag and the Saxon State Ministry for Economic Affairs, Labour, Energy and Climate Protection.