Infineon offers to build 300mm wafer fab in Dresden

Infineon offers to build 300mm wafer fab in Dresden
Business news |
German chip company Infineon Technologies AG is planning to spend between €1.1 billion and €2.4 billion expanding chip production in Dresden, according to an interview with site managers.
By Peter Clarke


The basic spend would be to increase production capacity at the wafer fab it runs there with an additional €1.3 billion being budgeted for the construction of a complete additional 300mm wafer fab module for the production of power semiconductors.

The additional fab module is “up for debate” but “an aid share of 25 percent or more would be necessary,” the report in Oiger said, quoting Infineon Dresden site managers Thomas Morgenstern and Raik Brettschneider.

A spokesperson for Infineon told eeNews Europe: “We are planning to expand existing production capacities in Dresden by around €1.1 billion over the next five years. Whether a fourth factory module will be realized beyond this has not been decided. The construction of a new factory module in Dresden is being examined as one of several possible options if the market continues to develop positively in line with growth prospects.”

The news comes shortly after near neighbour Globalfoundries said it plans to double its production capacity in Dresden with a spend of about €1.4 billion (see Globalfoundries plans to boost production).

The Oiger interview is timely as Europe and Germany are considering whether to launch an Important Project of Common European Interest (IPCEI) in microelectronics that might make billions of euros available to support European chip manufacturing (see Germany ready to help Europe invest ‘billions’ in chip manufacturing).

Next: One virtual fab

Morgenstein is reported saying that Infineon’s existing Dresden wafer fab is running at maximum capacity due to demands brought by a mix of the automotive sector, 5G communications and the Covid-19 pandemic. This why Infineon is considering spending €1.1 billion to expand the existing fab.

The additional wafer fab, if construction is agreed, would be focused on high-voltage power semiconductors such as those used in electric car motors and wind turbines, the report said. Infineon Dresden has submitted both proposals as part of the IPCEI-2 process, it added.

Infineon already plans to spend €140 million in Dresden in 2021 to expand production capacity from 30,000 wafers per month to 33,000 wpm. An additional wafer fab for power semiconductors is also being brought up in Villach, Austria. There is a plan is to merge the Dresden and Villach factories into one virtual factory for power semiconductors, the report said.

Related links and articles:

Oiger report

News articles:

Globalfoundries plans to boost production

Germany ready to help Europe invest ‘billions’ in chip manufacturing

TSMC has no “concrete” plans to make chips in Europe

Bosch’s Dresden wafer fab prepares for production

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