Dresden increases its investment substantially in the enhancement of urban infrastructure, focusing on water supply, power distribution, and high-speed internet networks.
In the heart of Europe, Dresden is gearing up for a significant transformation. The city, often referred to as the 'Silicon Saxony', is witnessing an influx of major players in the semiconductor industry, with Global Foundries, Bosch, Infineon, and the new ESMC plant setting up shop or expanding their facilities in the city's north.
One of the most anticipated projects is Infineon's construction of one of Europe's most advanced semiconductor factories. The factory's structural shell was completed in early summer 2025, with production equipment installation set to begin in autumn. Jenoptik, another key player in the region, is expanding its production capacity with investments in modern machines and infrastructure, aiming to meet the growing demands of the semiconductor industry.
These investments are not just about growth; they are about ensuring the future viability of water and power supplies for Dresden's semiconductor industry. The industry's growth is driving the increase in demand for electricity and water in Dresden. According to calculations by SachsenEnergie, the demand for industrial water will double within the next 20 years, with an additional 60,000 cubic meters needed in just five years. To meet this demand, the city is undertaking a comprehensive water network expansion project, which includes the construction of a new river water treatment plant in Ubigau and the renovation of Dresden's second-largest waterworks in Hosterwitz.
The demand for electricity is expected to increase almost fivefold by 2045, largely due to the shift away from fossil fuels and the growing importance of the microtechnology industry. A brand new switching station is being built in Altwilschdorf by 2030 to meet this demand. 50Hertz GmbH is also planning to replace the switching station in Schmoelln and expand the switching station in Streumen, as well as build new 380 kV overhead lines.
The expansion of fiber optic networks is another top priority for the city administration. New fiber optic connections are planned in large parts of Hellerau, Klotzsche, Weixdorf, and Wilschdorf to ensure a secure supply for the semiconductor industry.
A central industrial collector for wastewater is also being constructed by the Dresden municipal wastewater treatment plant. The citizen dialogue, attended by around 140 visitors, indicated that the upcoming chip factories of Infineon and ESMC can plan with more supply security.
The upcoming infrastructure projects in Dresden are not just about meeting the needs of the semiconductor industry; they are about making the city more attractive for companies in the sector. The close partnership between political, economic, and scientific actors in Dresden is a key factor in the city's future as a European center of the semiconductor industry. The shared vision of a future-proof infrastructure for the chip industry is a crucial element in the success of Dresden's semiconductor industry development.
The citizen dialogue was a significant event in the planning process for the future development of Dresden's semiconductor industry. It underscored the importance of open communication and collaboration between the city and its residents as Dresden embarks on this exciting new chapter in its industrial evolution. The expansion of the water network will cost over 300 million euros, a testament to the city and its partners' commitment to investing heavily in various projects for a future-proof infrastructure to remain an attractive location for companies in the semiconductor industry.
The construction of the new switching station in Altwilschdorf is a joint project between SachsenEnergie and 50Hertz GmbH, reflecting the collaborative spirit that is driving Dresden's semiconductor revolution. The upcoming chip factories of Infineon and ESMC are evidence that Dresden is on the best path to remain the European center of the semiconductor industry in the future.
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