The European Commission authorized on Thursday Germany's state aid plan in support of Infineon Technologies AG for its new semiconductor manufacturing facility in Dresden. The German government will support the company with a direct grant worth €920 million.
The Commission said the plant is expected to reach its full capacity in 2031 and will be the first European chip production facility able to quickly switch between manufacturing discrete power and analog-mixed signal technologies. In order to secure the grant, Infineon agreed to invest in the research and development of the next generation of chips in Europe and implement priority-rated orders in case of a supply shortage, among other measures.
Infineon's shares gained 2.80% following the announcement.
