EU Approves €920M Aid for Infineon Plant in Dresden

The European Commission has approved a €920 million state aid package to support Infineon's new semiconductor manufacturing plant in Dresden, Germany, known as the MEGAFAB-DD project. This plant will produce a range of chips, including discrete power technologies and analog/mixed-signal integrated circuits, enhancing Europe's semiconductor capacity and resilience. Notably, the facility can switch production between two technology families, a first in Europe, and is expected to be fully operational by 2031, pending approval from Germany's Federal Ministry for Economic Affairs and Climate Action. Infineon's investment in the project totals approximately €3.5 billion, with the plant expected to open in 2026. This initiative aligns with the EU's broader objective to strengthen its technological autonomy under the European Chips Act. The project promises to bolster Europe's semiconductor supply chain, contribute to research and development, and offer wider positive effects throughout the EU's chip value chain.