EC to clear ‘most’ of Infineon DRAM aid package

Competitive

The European Commission is expected to approve "most" of a EUR220m aid package granted by the German government for Infineon's new EUR1.1bn DRAM plant, competition spokesman Michael Tscherny told reporters yesterday.

Discussions are continuing over a EUR40m slice of the subsidy, but the rest is expected to be approved formally in a few weeks, the FT says. The exact level of subsidy is contingent on the number of jobs secured by the subsidy.

Although the aid package - or most of it - has passed EC competition rules, it will be interesting to see what Micron, the US national champion in the DRAM sector, makes of the decision. It has taken a robust stance to what it regards as dumping or unfair competition, enlisting the support of the US government in sundry actions.

Infineon yesterday declined to comment on an Economic Daily News report that the company was negotiating a tie-up with Nanya Technology Corp to build two 300mm wafer plants in Taiwan. ®