German semiconductor manufacturer Infineon has opened a €5 billion chip factory in Dresden, marking the company’s largest-ever investment and a major step toward Europe’s technological independence. Supported by around €1 billion in EU funding under the European Chips Act, the facility produces power semiconductors for AI data centers, electric vehicles, and renewable energy systems.
The plant doubles Dresden’s production capacity, creates around 1,000 jobs, and uses AI-powered manufacturing processes to improve efficiency. The investment strengthens Europe’s semiconductor supply chain and reduces its dependence on Asian manufacturers for critical technologies.