The massive €920 million loan will go to support the construction of Infineon’s planned semiconductor factory in Dresden, which is currently estimated to be completed and have hit its full production capacity by 2031.
With the completion of the factory, Infineon also plans to complete its MEGAFAB-DD project, which will allow the manufacturer to produce a variety of different computer chips. The EU Commission also sees strong value in this, as it writes that the plant will bring “flexible production capacity to the EU and thereby strengthen Europe’s security of supply, resilience and technological autonomy in semiconductor technologies.”
Specifically, the factory is to produce two “technology families,” including discrete power technologies used for power switching, management and control in electronic systems, as well as analogue/mixed-signal integrated circuits that are crucial for bridging the gap between the analogue and digital worlds. The factory will be able to flexibly switch between production modes for either family, “while maintaining its high output capacity.” The factory will be a front-end facility, covering wafer processing, testing and separation.
The massive loan does not represent the entire construction cost, as the total investment will cost around €3.5 billion. To receive the loan, Infineon also agreed to a number of criteria, including ensuring that “the project will bring wider positive effects to the EU semiconductor value chain,” as well as investing in research and development for the next generation of chip technology. Furthermore, Infineon will “contribute to crisis preparedness by committing to implement priority-rated orders in the case of a supply shortage in line with the European Chips Act Regulation” and provide access to its new facility to SMEs and research organisations for testing and prototyping.
Even though the state aid approval from Brussels has only just been finalized, construction is already underway: Infineon’s application for an early start to the project was approved by the responsible German Federal Ministry of Economics in January 2023.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, commented: “The €920 million German measure approved today supports a cutting-edge megafab in Dresden. This project will support the development of a strong and resilient digital economy in Europe and ensure a secure supply of semiconductors for the industry while limiting any potential distortion of competition.”
The German government had officially announced intentions to fund the factory towards the end of last year, and Infineon is already involved in a construction project in Dresden for another chip factory in Dresden in a joint venture together with TSMC, Bosch and NXP. Infineon is spreading its production fairly wide, having also inaugurated an SiC semiconductor production facility in Malaysia just days before starting construction in Dresden.
ec.europa.eu
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Publish date : 2025-02-20 17:30:00
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