The European Commission has approved a €920 million state aid package to support Infineon Technologies AG (IFX, Financial) in constructing a new chip manufacturing facility in Dresden, Germany. This initiative aims to bolster Europe's supply security, resilience, and technological autonomy in the semiconductor sector.
The project, as outlined by Germany to the European Commission, intends to cater to both industrial and consumer application demands. The Dresden plant will focus on two key technologies: discrete power technologies for power switching, management, and control in electronic systems, and analog/mixed-signal integrated circuit technologies.
Infineon (IFX, Financial) will receive the aid in the form of a direct grant, contributing to its total investment of €3.5 billion. The upcoming facility will be Europe's first to rapidly switch production between these two technologies while maintaining high output capacity. It will include wafer processing, testing, and separation, with plans to reach full production capacity by 2031.
This marks the sixth time the EU has approved state aid measures to support the semiconductor industry since 2022.
