EC green lights Infineon state aid

Portuguese hand-out

The European Commission has allowed the Portuguese government to provide Infineon with a €71.96m ($88.71m) grant to fund the foundation of a memory chip fab.

The grant amounts to 32 per cent of the cost of a project to expand production at its Vila do Conde (Grande Porto) facility.

EC investigators had to examine the deal because it exceeds €50m ($61.64m). State aid packages above that figure have to reported to the EC and checked for potential anti-competitive aspects.

This time round, the EC approved the full amount, which exactly matches the 32 per cent limit on such aid.

In March, however, the EC approved just €41.5m ($51.16m) of a proposed €76.8m ($94.67m) grant to be offered by the Portuguese government to fund a separate project at Infineon's facility at Vila do Conde. The EC began its investigation into the first grant in July 2003. ®

Related stories

EC approves Infineon state aid package
EC launches Infineon state aid probe
Chip biz breaks quarterly fab spend record
Infineon hires CEO from tyre maker
EC to fund Euro 45nm process with €24m grant

Sponsored: Network DDoS protection