Infineon Technologies AG (OTCQX: IFNNY) has opened its Smart Power Fab in Dresden, Germany, several months ahead of schedule, according to a company statement.

The facility represents a €5 billion investment, the largest single investment in Infineon's history, and creates 1,000 direct jobs. The company claims the plant is the largest factory for power semiconductors and analog/mixed-signal technologies in the world, doubling Infineon's manufacturing capacity at its existing Dresden site.

The fab is designed to produce chips for applications including power supplies for AI data centers, electric vehicles, wind and solar power systems, and industrial equipment. Infineon says the facility uses a digital twin for production planning and AI algorithms to support process clearance, enabling capacity ramp-up at twice the speed of previous facilities.

"We're opening our new plant at just the right time," said Jochen Hanebeck, CEO of Infineon Technologies AG. "Our Smart Power Fab is creating urgently needed capacities for the key technologies of the future, for everything from energy supply for AI data centers to software-defined vehicles and renewable energies."

The facility is connected to Infineon's plant in Villach, Austria, operating as a "One Virtual Fab" to accelerate process and product qualification. The plant requires no natural gas and is designed to reintroduce approximately 90 percent of water used back into circulation, while recovering up to 45 percent of energy consumed.

Infineon reported revenue of approximately €14.7 billion in its fiscal year ending September 2025 and employs around 57,000 people globally.