Commission approves €319 million Austrian State aid for first-of-a-kind semiconductor manufacturing facility
The aid will take the form of a grant and support the upgrading of Infineon Technologies Austria AG’s (IFAT) semiconductor facility.
This upgrading of IFAT’s facility will establish high volume manufacturing of power Gallium Nitride semiconductor devices. This type of semiconductors provides superior energy efficiency, greater power density and faster switching, enabling more compact systems compared to traditional silicon-based semiconductor devices. They can be used in several strategic and economic sectors such as AI, energy infrastructure or electric mobility. This facility will be first-of-a-kind in the EU. IFAT has committed to expanding its collaboration with start-ups, SME’s, universities and research institutions.
The Commission assessed the measure under Article 107.3 c) and the principles settled in the European Chips Act and found that the measure is necessary and proportionate, the aid has an incentive effect and the impact on competition and trade is limited. Furthermore, the aid has wider positive effects including enhanced security of supply and a stronger EU position in the semiconductor industry, contributing to the EU’s technological autonomy.
The decision will be made available under the case number SA.113427 in the State aid register.
For more information, see the Commission’s PR.