EU approves German state aid to support chip factories

BRUSSELS, ‌Dec 11 (Reuters) - The European Commission ‍on ‌Thursday said it had approved 623 million ⁠euros ($729.16 million) ‌in German government aid to support the creation of two new semiconductor manufacturing ⁠facilities in Germany.

The aid consists of two grants, ​worth 495 million euros and ‌128 million euros, ⁠respectively.

The bigger grant will go to GlobalFoundries, a semiconductor foundry specialised ​in the manufacturing of semiconductor devices exclusively for other companies. The second grant will go to X-FAB, ​to ‍support construction ​of a new open foundry facility at its existing site in Erfurt, Germany.

The Commission said in a statement that the measures facilitated the development ⁠of economic activities in Europe where the facilities ​would be first-of-a-kind. It added that the measures would have wider positive effects for the European ‌semiconductor ecosystem.

($1 = 0.8544 euros)

(Reporting by Louise Breusch Rasmussen, editing by Bart Meijer)