On December 11, the European Commission announced that it has approved €623 million (US$729.16 million) in aid from the German government to GlobalFoundries and X-FAB to support the construction of two new semiconductor manufacturing plants in Germany.
The aid consists of two grants worth €495 million and €128 million, respectively. The larger grant will be provided to GlobalFoundries, a semiconductor foundry that manufactures chips for other companies. The second grant will go to X-FAB to support the construction of a new open-access foundry at its existing site in Erfurt, Germany.
In a statement, the European Commission said that these measures promote the development of economic activity in Europe and that the new facilities will be the first of their kind. The Commission added that the measures will have a broader positive impact on Europe's semiconductor ecosystem.
