Infineon Announces Readiness to Launch €5 Billion Semiconductor Factory, Production Starts July 2

On June 12, Infineon Technologies AG announced that it is preparing to launch its largest single investment to date—a semiconductor factory costing €5 billion (approximately 39.2 billion RMB). The construction of this factory has received subsidies from the European Union, aimed at increasing chip production. Infineon's Chief Operating Officer Alexander Gorski stated on-site this week that this power chip manufacturing facility is part of the company's expansion project in the Dresden area and will officially commence production on July 2. The project is a major beneficiary of the EU's Chip Act, having received approximately €1 billion in subsidies. Gorski mentioned that the chip production at the Dresden factory will gradually expand based on demand, with an expected annual revenue increase of up to €5 billion, although he declined to disclose when full capacity would be reached. He added that the company has invested around €2 billion in construction, with the remaining funds to be phased in for adding more equipment to the wafer fab.