European Commission approves 5 billion euros in German aid for microchip factory in Dresden

The European Commission has approved the five billion euros in German aid for the construction of the microchip factory in Dresden. The Brussels authority examined the support under EU state aid rules, which allow member states to promote the development of certain economic sectors. According to the Commission, the aid has an incentive effect: without the support, the plant would not be built. Investments of at least ten billion euros are planned, half of which the Federal Ministry of Economics intends to provide.

The Taiwanese semiconductor company TSMC, together with Bosch, Infineon and NXP Semiconductor, wants to build a new semiconductor factory in the north of Dresden. The chips are to be produced primarily for the automotive industry. The symbolic ground-breaking ceremony is to take place today, with EU Commission President Ursula von der Leyen expected as a guest.

Federal Minister for Economic Affairs Robert Habeck (Greens) welcomed the pace set by the Brussels authority - from a German perspective, things should now continue in the same vein: "We will maintain the high pace of the project and complete the financing approval quickly," he announced. The semiconductor factory is an important project within the framework of the European Chip Act. It is also intended to establish innovative and sustainable semiconductor production in Europe.