The European Commission has approved a German aid measure of 920 million euros to support the construction of a new chip factory by Infineon in Dresden. The measure will enable the company to complete a project that will enable the production of a wide range of chips, the Brussels-based authority announced on Thursday.
The new manufacturing facility will be equipped with “flexible production capacities” and will thus strengthen the supply security, resilience and technological autonomy of the EU in the field of semiconductor technology. Germany had notified the Commission of the support for the project and requested its approval.
The semiconductors produced in the factory are intended for industrial, automotive and consumer applications. Infineon will receive a direct subsidy of up to 920 million euros to promote its investment of 3.5 billion euros.
“With this project, the development of a strong and resilient digital economy in Europe is being promoted and the supply of semiconductors to industry is being secured” said EU Vice President Teresa Ribera. “This will limit possible competitive distortions to a minimum.