FRANKFURT: Chipmaker Infineon unveiled plans Monday for a €5 billion (RM23.75 billion) factory in the eastern German city of Dresden, as Europe races to reduce its reliance on semiconductors made in Asia.
“This would be the largest single investment in Infineon’s history,” the German firm said in a statement.
The new site, slated to open in the autumn of 2026, is expected to create up to 1,000 jobs, Infineon said, adding that the project was conditional on receiving “adequate public funding”.
A global shortage of semiconductors, spurred by a pandemic-era boost in demand for consumer electronics, has snarled international supply chains and forced manufacturers to trim production in a range of industries.
German carmakers have been among those hit hard, as semiconductors are a crucial component in both conventional and electric vehicles.
The European Union this year launched a €43 billion plan known as the “Chips Act”, which aims to double Europe’s market share in semiconductors by 2030 to reduce dependence on supplies from Asia.
German engineering group Bosch announced in July that it planned to invest three billion euros in domestic semiconductor production by 2026.
US tech giant Intel earlier this year said it would invest 17 billion euros in a new manufacturing site in Magdeburg, also in eastern Germany. – AFP