Infineon Technologies is opening its €5 billion Smart Power Fab in Dresden on 2 July, three months ahead of schedule. The facility, backed by ~€1 billion in EU Chips Act subsidies, will produce power semiconductors for AI data centres, electric vehicles, and renewable energy using 300mm silicon and silicon carbide wafers. It marks the EU Chips Act's first major success after Intel cancelled its Magdeburg fab in August 2025. Infineon's data centre revenue has surged from €250M in FY2024 to over €700M in 2025, with management projecting €2.5B by 2027. The fab could eventually add €5B in annual revenue and create up to 1,000 jobs. Infineon shares have more than doubled this year, with Morgan Stanley raising its price target to €91.
Table of contents
A rare win for the Chips ActThe AI power chip betWhat the fab will produceMarket reactionThe flags25 Impressions