The European Commission has approved a €920 million German aid measure to construct a semiconductor manufacturing plant in Dresden. Infineons MEGAFAB-DD project will produce various chips, enhancing Europes supply security and technological autonomy as outlined in the European Chips Act and Political Guidelines.
The German Measure
Germany supports Infineons project to create a semiconductor plant in Dresden. This facility will produce discrete power technologies and analog/mixed-signal circuits for various applications. The plant can quickly switch production between these technologies, reaching full capacity by 2031.
Infineon will receive a direct grant of up to €920 million for its €3.5 billion investment. The project will benefit the EU semiconductor value chain, advance R&D, and provide SMEs and research organizations access for testing.
The Commissions Assessment
Under EU State aid rules, the Commission found the measure facilitates economic activity development, as its the first European facility able to flexibly produce two technology families. The aid is necessary to ensure Europes semiconductor supply chain resilience and is proportionate to the investment need.
Background
On 8 February 2022, the Commission adopted the European Chips Act Communication, part of a comprehensive package to enhance semiconductor production and supply chain resilience in the EU.
For More Information
The non-confidential version of the decision will be available under case number SA.106117 in the State aid register on the Commissions competition website.