EU to approve Infineon chip plant bailout

Infineon Technologies' plans to build a RAM chip plant in Dresden, Germany, got a boost yesterday (25 March) when the European...

Infineon Technologies' plans to build a RAM chip plant in Dresden, Germany, got a boost yesterday (25 March) when the European Commission indicated that it is likely to approve an injection of €219m (£134m) in state aid to help the German chip maker establish the new factory.

The German government wants to help Infineon establish the plant, to build 512Mbit and larger RAM chips, in eastern Germany because they see it creating jobs for the area, the Commission said.

The Commission, the executive body of the European Union which overseas competition matters, was initially concerned about the aid because it saw overcapacity in the RAM market. However, Commission spokesman Michael Tscherny said the picture has changed.

"We had three concerns with this aid," Tscherny said. "The overall market situation with overcapacity and declining demand, the questionable creation of jobs by Infineon, and the indirect creation of jobs, with suppliers and locally."

He said that the first objection was the main one and that the situation had now changed. "We see the market improving now," he said.

The €219 million state aid package, which accounts for around 20% of the cost of building the plant, was notified to the European Commission in November. The Commission will take its final decision at the end of April or the beginning of May, Tscherny said.

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more on IT jobs and recruitment

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close