Infineon Technologies has opened what officials described as the world’s largest power semiconductor fabrication plant in Dresden, Germany. The facility, named the “Smart Power Fab,” began operations in mid-2025, according to company statements. The plant is expected to produce chips for automotive, industrial, and renewable energy applications.
The opening comes during a period of sustained global demand for microchips, which has disrupted production of vehicles and other goods. A shortage of semiconductors significantly impacted carmakers’ ability to build new vehicles, leading to higher prices in both new and used car markets, as reported by Cars.com Executive Editor Joe Wiesenfelder in 2021. [2] The new Dresden fab is positioned to supply power semiconductors that manage energy conversion in electric vehicles, data centers, and renewable energy systems.
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