Friday, July 11, 2003
The European Commission has launched an investigation into Portugese state aid for Technicos-Fabrico de Semiconductores SA, a subsidiary of Infineon Technologies AG located in Vila do Conde, Portugal, the Commission said.
Portugal wants to grant aid amounting to 76.8 million euros (about $87 million) to the company for the extension of a semiconductor test and assembly plant used by Infineon for DRAM packaging.
The Commission said the investigation would allow it to verify that the company is eligible for regional investment aid under European law and if so, whether the aid respects the applicable regional aid ceilings. The probe would also give interested third parties such as Infineon's competitors an opportunity to comment.
The DRAM sector is particularly sensitive since Micron Technology Inc. initiated a U.S. investigation of South Korean DRAM maker Hynix Semiconductor Inc. Infineon also asked the European Commission to probe state aid for Hynix.
A key factor in assessing eligibility for regional investment aid is whether the proposed project would take place in a sector suffering from structural overcapacity, the European Commission said in a statement.
By: DocMemory
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