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Investing.com -- Infineon (OTC:IFNNY), a semiconductor company, is set to receive up to 920 million euros ($959 million) from Germany to construct a factory in Dresden.
The funding comes after the European Commission approved the state aid. The factory, however, still needs approval from Germany’s Federal Ministry for Economic Affairs and Climate Action (WA:ACT) (BWMK).
The plant, once approved, will be the first in Europe with the capability to quickly switch between two high-capacity technologies utilized across various sectors. Infineon began construction on the factory in March 2023 and expects it to become operational in 2026. The company anticipates receiving approval from BMWK in the coming months.
Jochen Hanebeck, Infineon’s CEO, stated that this government-backed investment fortifies Dresden, Germany, and Europe’s position as a semiconductor hub. It also fosters a cutting-edge innovation and production ecosystem for microelectronics.
As part of the agreement, Infineon will ensure the project brings "wider positive effects" to the European Union’s chip value chain. The company will also invest in research for new types of chips in the EU and commit to fulfilling certain orders in case of a supply shortage.
Additionally, Infineon has pledged to provide small businesses and research groups access to its new facility to test and prototype new technologies.
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