AGIPD is a hybrid pixel X-ray detector developed by a collaboration between Deutsches Elektronen-Synchrotron (DESY), Paul-Scherrer-Institute (PSI), University of Hamburg and the University of Bonn. The detector is designed to comply with the requirements of the European XFEL. The radiation tolerant Application Specific Integrated Circuit (ASIC) is designed with the following highlights: high dynamic range, spanning from single photon sensitivity up to 104 × 12.4 keV photons, achieved by the use of dynamic gain switching, auto-selecting one of 3 gains of the charge sensitive pre-amplifier. To cope with the unique features of the European XFEL source, image data is stored in 352 analogue memory cells per pixel. The selected gain is stored in the same way and depth, encoded as one of 3 voltage levels. These memories are operated in random-access mode at 4.5MHz frame rate. Data is read out on a row-by-row basis via multiplexers to the DAQ system for digitisation during the 99.4ms gap between the bunch trains of the European XFEL. The AGIPD 1.0 ASIC features 64×64 pixels with a pixel area of 200×200 μm2. It is bump-bonded to a 500 μm thick silicon sensor. The principles of the chip architecture were proven in different experiments and the ASIC characterization was performed with a series of development prototypes. The mechanical concept of the detector system was developed in close contact with the XFEL beamline scientists to ensure a seamless integration into the beamline setup and is currently being manufactured. The first single module system was successfully tested at APS1 the high dynamic range allows imaging of the direct synchrotron beam along with single photon sensitivity and burst imaging of 352 subsequent frames synchronized to the source.