On Thursday 20 February, the European Commission announced that it had authorised, under EU State aid rules, German State aid worth €920 million for the construction of a new semiconductor production facility in Dresden. This aid will support German company Infineon’s investment of €3.5 billion.
The facility will produce two groups of technologies: discrete power technologies used for switching, managing and controlling power in electronic systems, and analogue/mixed-signal integrated circuits. It will be the first facility in Europe to be able to rapidly shift production from one technology group to another while maintaining its high production capacity.
In its Communication on the European Semiconductor Action of February 2022 (see EUROPE 12886/1), the Commission highlighted the importance of investing in new advanced production facilities in the semiconductor sector to ensure the security of supply and resilience of the EU supply chain, while producing significant positive effects on the economy as a whole.
The approval of this German State aid is the sixth Commission decision in line with the principles of this Communication. (Original version in French by Camille-Cerise Gessant)