Commission Approves €920 Million German Aid for Infineon’s New Semiconductor Plant
Today, the European Commission (Commission) has approved €920 million in German aid to Infineon for the construction of a semiconductor manufacturing facility in Dresden, which is planned to reach its full capacity by 2031. This measure is intended to boost EU chip production ensuring security of supply and technological autonomy.
The measure takes the form of a direct grant which will support Infineon’s €3.5 billion investment. Infineon has made commitments to strengthen the EU semiconductor value chain, advance chip R&D, enhance crisis preparedness, and offer SMEs and research organizations access to its new facility for testing and prototyping.
The Commission has approved the measure under Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU’), which enables Member States to grant aid to facilitate the development of certain economic activities subject to certain conditions, and based on the European Chips Act Communication’s principles.
The Commission has approved the aid as it supports the establishment of a first-of-its-kind semiconductor facility in Europe, incentivises investment that would not occur without public funding, has minimal impact on competition, and strengthens Europe’s semiconductor supply chain and ecosystem, with Infineon committing to obligations under the EU Chips Act.
For more information, see the Commission’s PR.