The European Commission has approved a €920 million German aid measure to support the construction of a new semiconductor production facility in Dresden. This measure will enable Infineon to complete the MEGAFAB-DD project, which will produce a variety of chip types. The project aims to enhance the EU's production capacity and strengthen its technological autonomy in semiconductor technologies, aligning with the objectives of the European Chips Act.
The aid will be a direct grant to Infineon, supporting its €3.5 billion investment. Infineon has committed to ensuring the project benefits the EU semiconductor supply chain, investing in chip research and development, preparing for crises by implementing priority orders during shortages, and providing access to its facility for SMEs and research organizations.